Apr 2012 - FWF Audit Report – Heshan Rondor Garments ... - KTC

Forced labour is not common in the private sector in China.
Ordinarily, firms rely on economic measures to limit the mobility of workers in garment factories.
Measures common to Chinese garment factories are delayed wage payments, security
deposits at the time of employment, fines for absenteeism, refusing overtime, etc.
The Spring Festival is a time of job hopping for Chinese migrants. Migrants frequently switch
employers after they return from a vacation in the countryside. Employers frequently refuse to
pay workers’ wages around this time in the hopes of maximizing the number of workers who
return to the firm after the festival.
Wherever workers are in debt to management, auditors should pay attention to the possibility
that the debts become a method of extorting or restricting the freedom of workers. This issue
requires some pragmatism, however. Chinese employers sometimes lend money to workers in
times of emergencies. Though this does present some risks where freedom of employment is
concerned, the willingness of employers to lend emergency financing to workers does save
lives when workers need hospital attention after accidents or serious illness.
In rural regions of eastern and northern China, there are factories that adopt a pay system that
mimics the seasonality of work in agriculture. They will only pay workers once or twice a year,
resembling the reward system of the harvest. As there are few factories in those regions,
workers have no choice but to accept the system. However, factories in more industrialized
districts no longer use this system of wage payments.
Document inspection
Factory has set up a policy manual including all Codes of FWF, and the policies regarding
employment is freely chosen is as below.
Factory has never used any forced, indentured or prison labour since the establishment.
If a worker wants to dissolve his labour contract, a notification in written form should be given
to the employer concerned 30 days in advance
During the probation period, worker may notify the employer of his decision to dissolve the
labour contract at any time.
In addition to the force labour policy, factory also enacts the guideline on preventing force
labour; for example: overtime hours must be voluntary; workers are not disciplined for refusing
to work overtime; all workers are voluntarily present. No workers are imprisoned or locked in
the factory; No locked gates or doors are used which prevent workers from exiting.
All workers’ personnel files are well kept in file, which include copies of identification cards,
application forms and personnel resume.
No documented evidences are found the business behaviours of the factory indicate forced
labour.
Inspection of the work place
Factory walkthrough confirm that workers can freely access to toilet and drinking water
facilities.
Workers can leave the factory compound while they are off duty without any restrictions.
4.2 No discrimination in employment
Interviews with management
Management state workers are recruited and promoted based on the ability rather than culture
background, gender, religious beliefs, sexual orientation, nationality etc.
Women enjoy the equal rights of employment as men. In providing employment, it is not
allowed to refuse employment of women on sex grounds or raise the employment standards
for women, except when the jobs or work posts are not suitable for women as provided for by
the State.
Audit report – Heshan Rondor Garments Limited – April/2012 Page 22 of 45