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Fair Labor Association

English

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[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: vineyard vines; Fifth & Pacific 
(formerly known as Liz Claiborne, Inc.) 
COUNTRY: Peru 
FACTORY CODE: 0502581101I 
MONITOR: GMIES 
AUDIT DATE: July 7 – 8, 2010 
PRODUCTS: Shirts 
PROCESSES: Downloading Fabric, Cutting, 
Embroidery, Sewing, Laundry, Finishing 
NUMBER OF WORKERS: 780 
 
 
2 
 
 
CONTENTS:  
Wages, Benefits and Overtime Compensation: Payment for All Hours Worked .......................................... 3 
Code Awareness: ........................................................................................................................................... 4 
Code Awareness: ........................................................................................................................................... 5 
Health and Safety: Personal Protective Equipment ...................................................................................... 7 
Health and Safety: Sanitation in Factory Facilities ........................................................................................ 8 
Hours of Work: Meal and Rest Breaks* ........................................................................................................ 9 
Hours of Work: Extraordinary Business Circumstance/Forced Labor ........................................................... 9 
 
 
 
 
 
 
 
 
*Denotes a Notable Feature  
 
 
 
 
 
 
 
 
 
 
 
 
 
3 
 
Wages, Benefits and Overtime Compensation: 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)  
 
Noncompliance 
 
Explanation: Time-tracking records show some inconsistencies; consequently, some workers have not 
received their overtime compensation completely. A sample of 15 time-tracking records 
from May and June 2010 showed that: 1) some time card records show the time the 
working day begins, but do not show the time the day ends and 2) other time cards 
show that employees have worked 24 hours continuously. However, there is no 
evidence that employees work that many hours, it is just a mistake with the time-
tracking system. In these cases, management does not know exactly how many hours of 
overtime employees have performed; thusly, management decides to pay workers only 
for the ordinary working hours. While the time record system is not accurate, workers 
are not paid for all hours worked.  
Plan Of 
Action:  
Factory reviewed prior payments and paid back missing wages. Vineyard Vines (VV) and 
Liz Claiborne (LCI), will send a third-party auditor to the factory in the first quarter of 
2011. At that time, they will confirm that the system is functioning properly.  
Deadline 
Date:  
 
Supplier 
CAP:  
Implement a control in the time-tracking process to verify accuracy through an 
inconsistencies report. Whenever a time card record does not show the beginning and 
ending hours of a work day, HHRR will require employee's supervisor to send a written 
memorandum with the correct time and hours worked to record into the system.  
Supplier 
CAP Date:  
08/02/2010  
Action 
Taken:  
The following verification language was provided by the third-party monitor, GMIES, 
hired by the company affiliates to follow up on the status of this report. The follow up 
was conducted on February 1, 2012. 
 
 
 
 
 
 
4 
 
 
COMPLETED. All inconsistencies in the time-tracking records have been appropriately 
addressed. The current time-tracking system clearly allows the workers' times (at the 
start and the end of their work days) to be reviewed. Overtime performed is also clearly 
and accurately tracked with the new system. Factory showed documentary evidence of 
payments owed to workers due to inconsistencies found in the 2010 IEM. Auditors 
reviewed 5 pay slips from July 5-11, 2010. These payments were paid back July 16, 2010 
Sources: time-tracking record review, pay slips, employee interviews  
Plan 
Complete:  
Yes 
Plan 
Complete 
Date:  
02/01/2012 
 
 
 
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: No evidence that VV or LCI provided Codes of Conduct (COCs) to the factory. Codes not 
seen posted in facilities; 100% of interviewed workers not aware of code provisions.  
Sources: worker interviews  
Plan Of 
Action:  
VV and FLA COCs are now posted in the factory and translated into the native language.  
Deadline 
Date:  
08/16/2010  
Supplier 
CAP:  
Get VV's COC translated into Spanish and post it on the factory posting wall, where it is 
visible to all workers.  
 
 
 
5 
 
Supplier 
CAP Date:  
08/16/2010  
Action 
Taken:  
The following verification language was provided by the third-party monitor, GMIES, 
hired by the company affiliates to follow up on the status of this report. The follow up 
was conducted on February 1, 2012. 
ONGOING. Both companies have provided their COCs, which were seen posted in a 
prominent place at the facilities (specifically, on the way to the canteen) and written in 
the local language. Factory showed documentary evidence of training provided on 
different work areas of LCI's COC standards; the training was given to 535 employees 
from September 27-30, 2011. However, in the case of VV's COC standards, factory has 
not provided workers with any training yet.  
Plan 
Complete:  
No  
Plan 
Complete 
Date:  
 
 
 
 
Code Awareness: 
GEN.3 Develop a secure communications channel, in a manner appropriate to the culture and 
situation, to enable Company employees and employees of contractors and suppliers to report to the 
Company on noncompliance with the workplace standards, with security that they shall not be 
punished or prejudiced for doing so. 
 
Noncompliance 
 
Explanation: Companies have not developed a secure communication channel that allows workers to 
report any noncompliances with the workplace standards to them.  
Plan Of 
Action:  
Both companies confirmed their respective COCs have been posted in native language. 
Both companies provided email addresses allowing workers to contact them directly.  
Deadline 
Date:  
07/12/2010  
 
 
 
 
 
6 
 
Supplier 
CAP:  
Find a way for workers to communicate directly with VV if they feel [Factory name] is 
not meeting code provisions. VV could create an email address to post along with the 
COC, so workers can use it to communicate directly with VV.  
Supplier 
CAP Date:  
08/27/2010  
Action 
Taken:  
The following verification language was provided by the third-party monitor, GMIES, 
hired by the company affiliates to follow up on the status of this report. The follow up 
was conducted on February 1, 2012. 
PENDING. Despite the fact that both VV and LCI have provided an email address, it is not 
effective; most workers do not have or use email accounts. From a sample of 25 
interviewed workers, 95% either do not have email accounts or have access to one. 
Auditors ran a poll among 80 employees (out of the interview sample). 82.5% stated 
they either do not have email accounts or have access to one; the other 17.5% that have 
access to or have used an email account are not aware of the email address to contact 
LCI or VV, even when it is mentioned in the company COCs that management has 
posted. Therefore, the email accounts provided by both companies are not an effective 
mechanism for workers to report any noncompliances that might happen at the factory. 
Sources: worker interviews  
Plan 
Complete:  
No  
Plan 
Complete 
Date:  
 
 
 
 
 
 
 
 
 
 
 
 
 
7 
 
Health and Safety: Personal Protective Equipment  
H&S.11 Workers shall be provided with effective and all necessary personal protective equipment 
(such as gloves, eye protection, hearing protection, respiratory protection, etc.) to prevent unsafe 
exposure (such as inhalation or contact with solvent vapors, noise, dust, etc.) to health and safety 
hazards, including medical waste. (S) 
 
Noncompliance 
 
Explanation: 1 worker handling benzene in the stain-removal area was seen without the relevant 
respiratory personal protective equipment (PPE).  
Plan Of 
Action:  
Both companies require that PPE is available for workers to use. The factory has 
scheduled training advising workers on the need to use PPE. The companies will send a 
third-party auditor to confirm compliance in this area.  
Deadline 
Date:  
 
Action 
Taken:  
The following verification language was provided by the third-party monitor, GMIES, 
hired by the company affiliates to follow up on the status of this report. The follow up 
was conducted on February 1, 2012.  
COMPLETED. All employees performing stain-removal tasks were seen using the relevant 
PPE (respiratory masks). Factory also showed documentary evidence of training on the 
use of chemicals and on emergencies due to chemical spills. This training was provided 
in February 2011 and included some employees from the stain-removal area. 
Furthermore, training on security and risk prevention was provided in May 2011. This 
training included information about the importance of using the relevant PPE; workers 
from the stain-removal area participated in this training.  
Source: observation tour  
Plan 
Complete:  
Yes 
Plan 
Complete 
Date:  
02/01/2012 
 
 
 
 
 
 
8 
 
Health and Safety: Sanitation in Factory Facilities  
H&S.22 All facilities including factory buildings, toilets, canteens, kitchens, and clinics, shall be kept 
clean and safe and be in compliance with all applicable laws, including relevant sanitation, medical and 
safety and health regulations. (S)  
 
Noncompliance 
 
Explanation: All toilets in the men's restrooms were dirty and out of service. Some of the women's 
toilets were dirty and out of service.  
Source: observation tour  
Plan Of 
Action:  
The factory has taken corrective action to improve conditions in the current facility. 
Factory has plans to move to a larger facility in October. Companies will send an auditor 
to the factory in the first quarter of 2011 to confirm improvement in this area.  
Deadline 
Date:  
 
Supplier 
CAP:  
Assign maintenance personnel to strengthen activity periods when many workers use 
the restrooms at the same time, such as at the start, change and end of every shift.  
Supplier 
CAP Date:  
07/19/2010  
Action 
Taken:  
The following verification language was provided by the third-party monitor, GMIES, 
hired by the company affiliates to follow up on the status of this report. The follow up 
was conducted on February 1, 2012. 
The maintenance team has been assigned to permanently stay on duty for 30 minutes in 
the men's and women's restrooms during the start, change, and end of every shift. The 
maintenance routine is being repeated every 30 minutes during working hours where 
the workers use the restrooms randomly. Any malfunction is resolved immediately. 
When broken parts require replacement, it is resolved in 24 hours.  
COMPLETED. New facilities' bathrooms were seen to be in good condition. The day the 
factory was visited, the bathrooms looked clean; employees confirmed that bathrooms 
are clean and work appropriately almost all the time.  
Sources: physical inspection, worker interviews 
 
 
 
 
9 
 
Plan 
Complete:  
Yes  
Plan 
Complete 
Date:  
02/01/2012 
 
 
 
Hours of Work: Meal and Rest Breaks  
HOW.3 Employers shall provide reasonable meal and rest breaks, which, at a minimum, must comply 
with local laws. (S)  
 
Notable Feature  
 
Explanation: Factory provides a free meal to all workers working overtime during the morning and 
evening shifts. This is not required by Peruvian law.  
 
 
 
 
Hours of Work: Extraordinary Business Circumstance/Forced Labor  
HOW.11 In case of extraordinary business circumstances, employers shall make reasonable efforts to 
secure voluntary overtime work prior to mandating involuntary overtime. Employers must get workers 
voluntary consent periodically for all overtime that is above the 12 hours as provided for in the Code 
and that is not due to extraordinary business circumstances. (P)  
 
Noncompliance  
 
Explanation: 47% of the record review samples showed workers working more than 60 hours in 1 
week. This was corroborated from June and July 2010 records; the workers affected 
belonged to the sewing department.  
Source: record review  
 
 
 
 
 
10 
 
 
Plan Of 
Action:  
Factory has provided a plan to reduce overtime. The factory continues to communicate 
to workers that overtime is voluntary; they have distributed the Factory Internal 
Regulations to all workers. Workers also sign a form accepting overtime and 
acknowledging that they will receive the corresponding legal compensation. Companies 
will send an auditor in the first quarter of 2011; the number of hours worked will be 
reviewed at that time.  
Deadline 
Date:  
 
Supplier 
CAP:  
Management's commitment is to not plan for any employee to work more than 60 hours 
in 1 week. Supervisors will be instructed to not plan or request any overtime that will 
exceed 60 hours per week. Whenever extraordinary circumstances require scheduling 
an employee to work more than 60 hours in 1 week, or on Sundays, the supervisor 
should make the request through a memorandum to be approved by the factory's CEO. 
Peruvian law allows employees to work more than 60 hours in 1 week and on Sundays, 
providing that overtime is paid at corresponding rates.  
Supplier 
CAP Date:  
08/09/2010  
Action 
Taken:  
The following verification language was provided by the third-party monitor, GMIES, 
hired by the company affiliates to follow up on the status of this report. The follow up 
was conducted on February 1, 2012. 
Supervisors plan and control schedules so overtime does not exceed 60 hours per week 
and there is not work on Sundays. The memorandum request and approval is 
established.  
COMPLETED. A sample of time records found that employees are not working more than 
60 hours per week. Workers confirmed that overtime is voluntary.  
Sources: time record review, employee interviews 
Plan 
Complete:  
No  
Plan 
Complete 
Date:  
02/01/2012 
 
 
 
 
 
 


Fifth & Pacific (Formerly Liz Claiborne); Vineyard Vines  Tracking Report – Peru Factory Code: 0502581101I; July 7 – 8, 2010

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Fifth & Pacific (Formerly Liz Claiborne); Vineyard Vines Tracking Report – Peru Factory Code: 0502581101I; July 7 – 8, 2010

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