This document is part of a digital collection provided by the Martin P. Catherwood Library, ILR School, Cornell University, pertaining to the effects of globalization on the workplace worldwide.  Special emphasis is placed on labor rights, working conditions, labor market changes, and union organizing.FLA_2010TrackingChart_Russell.pdf: 93 downloads, before Oct. 1, 2020

Fair Labor Association

English

DigitalCommons@ILR

[Type text] 
 
 
 
 
2010 
FAIR LABOR ASSOCIATION  
INDEPENDENT EXTERNAL MONITORING REPORT   
 
For an explanation on how to read this report, please visit the FLA website here. 
 
COMPANY: Russell Corporation 
COUNTRY: Honduras 
FACTORY CODE: 2600291118I 
MONITOR: Independent Monitoring 
Group of El Salvador (GMIES) 
AUDIT DATE: May 26-28, 2010 
PRODUCTS: Socks 
PROCESSES: Knitting, Sewing, Whitening, 
Dyeing, Finishing, Packaging, Shipping 
NUMBER OF WORKERS: 917 
 
 
2 
 
 
 
CONTENTS:  
Wages, Benefits and Overtime Compensation: Holidays, Leave, Legal Benefits and Bonuses*   ________ 3
Wages, Benefits and Overtime Compensation: Deposit of Legally Mandated Deductions   ____________ 4
Wages, Benefits and Overtime Compensation: General Compliance Wages, Benefits and Overtime 
Compensation   _______________________________________________________________________ 5
Wages, Benefits and Overtime Compensation: Voluntary Wage Deductions*   _____________________ 6
Wages, Benefits and Overtime Compensation: Voluntary Wage Deductions/Worker Access to 
Information*   ________________________________________________________________________ 6
Freedom of Association: Grievance Procedure*   ____________________________________________ 7
Harassment or Abuse: Discipline/Review of Disciplinary Action   ________________________________ 7
Non-Discrimination: Protection and Accommodation of Pregnant Workers and New Mothers   ________ 8
Non-Discrimination: Other - Non-Discrimination   ____________________________________________ 9
Health and Safety: Evacuation Requirements and Procedure   _________________________________ 10
 
 
 
 
 
 
 
*Denotes a notable feature  
 
 
 
 
 
 
 
 
 
 
3 
 
Wages, Benefits and Overtime Compensation: 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)  
 
Notable Feature 
Explanation:  The follow additional benefits (further than the law) are provided to the employees:  
1. Free transportation for employees;  
2. It is a factory practice to voluntarily pay annual severance to all workers;  
3. Factory provides a "Quality Bonus" to those workers who comply with the cleanliness 
and order rules;  
4. The program [program name], which helps workers to continue their studies up to 
high school. This program is coordinated with the Ministry of Education, and workers 
receive free education. They just pay for the materials they use.
 
  
 
 
 
 
 
 
 
 
 
 
 
 
4 
 
Wages, Benefits and Overtime Compensation: Deposit of Legally Mandated Deductions  
 
WBOT.13 All legally mandated deductions for taxes, social insurance, or other purposes shall be 
deposited each pay period in the legally defined account or transmitted to the legally defined agency. 
This includes any lawful garnishments for back taxes, etc. The employer shall not hold over any of 
these funds from one pay period to the other unless the law specifies that deposits are to be made less 
frequently than pay periods (e.g., monthly deposits, weekly pay). If the law does not specify, then 
deposits shall be made before the next pay period in all cases. (S) 
 
Noncompliance 
Explanation:  It was corroborated that in April 2010 there was a 2-day delay of payment of the social 
security payroll. It could have affected workers who required health care services. 
There is no evidence that it is a general and systematic noncompliance.
Plan Of 
Action:  
  
The factory will review the flow of documents and HR will set monthly dates to check 
this process in order to assure all areas have the necessary time for payment to be done 
on time. Those dates will range around the middle of each month.
Deadline 
Date:  
  
12/17/2010
Action 
Taken:  
  
Factory management has initiated monthly follow ups as scheduled. No issues have 
been identified.
Plan 
Complete:  
  
Plan 
Complete 
Date:  
Yes 
07/16/2010
 
  
 
 
 
 
 
 
 
 
 
5 
 
Wages, Benefits and Overtime Compensation: General Compliance Wages, Benefits and 
Overtime Compensation  
 
WBOT.1 Employers shall comply with all local laws, regulations and procedures concerning the 
payment of wages and benefits, including overtime compensation. In any case where laws and the FLA 
Code are contradictory, the standard that provides the greatest protection for workers shall apply. 
Where provisions are lacking, employers shall take measures to reasonably accommodate matters 
concerning the payments of wages and benefits, including overtime compensation. (S) 
 
Noncompliance 
Explanation:  There is a legal benefit that the factory does not accomplish: factory does not have a 
childcare facility, when it is mandatory by law to have one (Article 140 of the Code of 
Labor and Article 59 of Law for Equal Opportunities for Women).
Plan Of 
Action:  
  
The factory will visit the Ministry of Labor (MOL) to obtain a note from this entity that 
establishes that the Law of Infant and Adolescents states that it is the government's 
sole responsibility to have childcare centers. This law was passed in 1990, after our 
labor code that was made in the 1950s.
Deadline 
Date:  
  
07/30/2010
Action Taken:  
  
Plan 
Complete:  
Visit to the MOL has been delayed due to change in the Ministry officers. October 20, 
2010: The Company visited the MOL and the Chief of Labor issued a document that 
stated that it was the Government’s responsibility to have child care centers  
Plan 
Complete 
Date:  
Yes  
 
10/20/10 
 
 
 
 
 
 
 
 
6 
 
Wages, Benefits and Overtime Compensation: Voluntary Wage Deductions  
 
WBOT.14 Voluntary wage deductions for savings clubs, loan payments, etc. can only be made with the 
express and written consent of workers and shall be documented in employee files. All such voluntary 
deductions shall be credited to proper accounts and funds shall not be held illegally or inappropriately 
by employers. (S)  
 
Notable Feature 
Explanation:  Factory provides workers with loans without interest.
 
  
 
 
Wages, Benefits and Overtime Compensation: Voluntary Wage Deductions/Worker Access 
to Information  
 
WBOT.15 Workers shall have access to regular and full information concerning the status of relevant 
accounts and the status and level of their payments thereto. (P)  
 
Notable Feature 
Explanation:  Each pay period, factory provides all workers with a pre-form pay slip. In such a way, 
employees are able to check if the weekly payment they will receive is correctly 
calculated.
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
7 
 
Freedom of Association: Grievance Procedure  
 
FOA.26 Employer shall have in place written grievance procedures that allow first an attempt to settle 
grievances directly between the worker and the immediate supervisor but that, where this is 
inappropriate or has failed, it is possible for the worker to have the grievance considered at one or 
more steps, depending on the nature of the grievance and the structure and size of the enterprise. 
Employers shall ensure that the grievance procedures and applicable rules are known to workers. (P) 
 
Notable Feature 
Explanation:  Factory has designated effective grievance procedures:  
1. "Open doors policy" allows workers to go directly to the management to report any 
situation;  
2. Factory periodically has meetings with randomly selected workers in order to talk 
about possible noncompliances or grievances they have. These meetings are called 
"Coffee days."
 
  
 
 
Harassment or Abuse: Discipline/Review of Disciplinary Action  
 
H&A.3 The disciplinary system shall include possibilities for workers to have disciplinary action imposed 
on them reviewed by someone at a higher managerial position than the manager who imposed the 
disciplinary action. In addition, such a system shall include the ability of a worker to appeal and/or 
question any disciplinary action against him or her and/or have a third party of his or her choice 
present when the disciplinary action is being imposed. (P) 
 
Noncompliance 
Explanation:  The disciplinary system does not include the ability of workers to appeal or question 
any disciplinary action against them. It also does not include the ability for the worker 
to have a 3rd party of their choice present at the time the disciplinary action is 
imposed.
Plan Of 
Action:  
  
The company currently has in place an open door policy as well as grievance and 
employee resolution procedures. These processes will be reviewed and updated, if 
necessary, to ensure that they include the proper employee appealing systems for 
disciplinary actions.
 
  
 
 
 
8 
 
 
Deadline 
Date:  
 
07/30/2010
Action 
Taken:  
  
The company has completed the review process of the current grievance procedures 
and determined that the current open door policy offers employees opportunities to 
appeal disciplinary actions at different management levels. If the issues are not 
resolved through the open door policy, employees have the hotline process as an 
option to further appeal disciplinary actions.
Plan 
Complete:  
  
Plan 
Complete 
Date:  
Yes 
08/16/2010
 
  
 
 
Non-Discrimination: Protection and Accommodation of Pregnant Workers and New Mothers  
 
D.9 Employers shall abide by all protective provisions in local laws and regulations benefiting pregnant 
workers and new mothers, including maternity leave/benefits, prohibitions regarding night work, 
temporary reassignments away from work that pose risk to the health of women and their children, 
temporary adjustment of working hours during and after pregnancy, and the provision of breast-
feeding breaks and facilities. Where such legal protective provisions are lacking, employers to take 
reasonable measures to ensure the safety and health of pregnant women and their unborn children. 
Such measures shall be taken in a manner that shall not unreasonably affect the employment status, 
including wages and benefits of pregnant women. (P) 
 
Noncompliance 
Explanation:  Factory does not have protective provisions for temporary adjustment of working 
hours during pregnancy. It becomes necessary considering the 12-hour shift; for 
example, it was corroborated from the observation tour that some pregnant women 
are standing all the time. Evidence gathered indicated that, in fact, these women are 
standing all 12-hours of the shift.
 
  
 
 
 
 
 
 
 
9 
 
 
Plan Of 
Action:  
 
The company documents and tracks pregnancies through the employees' clinic. Each 
case is reviewed by the factory managers, including interviews with the pregnant 
employee and factory health care providers, to determine if changes in working 
conditions are necessary. We will review the current process and work on Standard 
Operating Procedure (SOP) to formalize the procedures and ensure that they are 
properly communicated.
Deadline 
Date:  
  
08/16/2010
Action Taken:  
  
The factory management has completed and implemented SOP to formalize 
procedures to properly document and track pregnant employees and adjust the 
working conditions if necessary.
Plan 
Complete:  
  
Yes
Plan 
Complete 
Date:  
  
08/25/2010
 
  
 
 
 
Non-Discrimination: Other - Non-Discrimination  
 
Other 
 
Noncompliance 
Explanation:  Factory doesn't have the legal number of workers with disabilities. According to the 
Article 2 of the Law of Employment Promotion for People with Disability, there must be 
1 disabled worker for each 100. Therefore, factory must hire, at least, 3 more workers 
with a disability.
Plan Of 
Action:  
  
The factory will create SOP to ensure that the hiring of disabled workers is included as 
part of the regular factory recruiting practices. Considering the challenges in recruiting 
disabled employees in the country, factory management will maintain records of all 
efforts made towards this goal.
 
  
 
 
 
10 
 
 
Deadline 
Date:  
 
08/16/2010
Action 
Taken:  
  
The factory management has completed and implemented SOP to formalize the 
procedures to hire disabled employees.
Plan 
Complete:  
  
Plan 
Complete 
Date:  
Yes 
08/19/2010
 
  
 
 
 
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:  Lines and arrows for the evacuation routes in the warehouse and in the knitting 
department need to be repainted. It is a legal compulsory based on the Article 208 of 
the General Rules about Preventive Measures of Industrial Accidents and Occupational 
Diseases.
Plan Of 
Action:  
  
The factory will review what needs to be painted and define the dates when it will be 
done.
Deadline 
Date:  
  
07/16/2010
Action 
Taken:  
  
The factory management has completed and implemented SOP to ensure that 
evacuation signs are properly maintained. Evacuation routes in the warehouse and 
knitting department will be repainted by September 1, 2010.  
 
 
11 
 
 
Plan 
Complete:  
 
Plan 
Complete 
Date:  
Yes 
09/01/2010
 
  
 
 
 
 
 


Tracking Chart 2010 Russell Corporation, Honduras

eCommons@Cornell

https://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1520&amp;context=globaldocs

Tracking Chart 2010 Russell Corporation, Honduras

Abstract

Similar works

Full text

Available Versions

DigitalCommons@ILR

eCommons@Cornell