BESTSELLER AUDIT CORRECTIVE AND PREVENTI

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BESTSELLER Page 1 of 6

BESTSELLER AUDIT CORRECTIVE AND PREVENTIVE ACTION PLAN

Appendix – SOP for audit providers Vendor MD Identifier Number (if informed)

Not informed Factory MD Identifier

(if informed) Not informed Vendor/supplier name

(all in CAPITAL letters)

Youngones (Bangldaesh) Ltd. Unit-II Vendor/supplier

category ☒ New _{☐ Old} Vendor/factory relationship ☐Subcontracted

☒Fully owned

☐via Agent, Agent name:

Years of business between supplier and factory N/A

BESTSELLER BRAND

(used at audited factory) ☐Vero Moda _{☐Only & Sons} BESTSELLER ORGANISAION

(BESTSELLER Buying Group used at audited

factory)

☐ Bestseller A/S (Danish Agents) ☐ Bestseller Italy

☐ Bestseller Turkey ☐ Bestseller China ☐ Bestseller India ☒ Bestseller Bangladesh

☐ India Retail Business ☐ China Fashion Group ☐ Nine United/Pieces (only India)

Factory name (all in small letters)

Youngones (Bangldaesh) Ltd. Unit-II Factory category ☐New ☒Old Previous registered factory name (s) Not applicable as previous name is same.

Factory address 24, Laxmipura, Shahid Chan Mia Sarak, East Chandona, Joydebpur, Gazipur.

Zip code 1700 City Gazipur

Province Dhaka Country Bangladesh

GPS coordinates n/a

Does factory use off-site workshops/

warehouse ☐Yes _☒No If yes, pls. describe: Not applicable

Factory contact person, name Mr. Md. Feroz Kabir Khan Telephone +88-09-606500143-44, +88-01708801801 (Contact person)

Position within company Head of people and culture Email [email protected] [email protected] Processes and production units

(e.g. sewing, packaging, dying, washing etc.)

Cutting > Sewing > Finishing >

Pressing > Packing. Building details 02 Buildings and 05 sheds

Chemicals used in factory Spot lifter-833, Machine oil, Engine oil,

Diesel etc. Environmental facilities and plans Nil

Capacity per week in final pieces 87,500 pieces/ week Number of machines Sewing machine-892 sets, Over-lock machine-76 sets, Kansai-35 sets, Button hole machine-77 sets, Button stitch machine-90 sets, feed off the arm machine-70 sets, Vertical machine- 122 sets, cutting machine-16 sets, fusing machine-12 sets, Thread sucker machine-03 sets, Pressing machine-78 sets.

% of factory production going to

BESTSELLER Nil Key Products produced Woven items (tops and bottoms)

Number of employees (non-management)

2390 (Total employees) Male/Female

distribution Male - 606 Female - 1784 Next payday Within March 07, 2018 (As per factory

management comments)

Audit company TÜV SÜD Bangladesh (Pvt) Ltd. Auditor(s)

Audit date

Md. Shamim Hossain, Humaira Tasnim, Md. Galib-ul-Azam and Sohalur Rahman Mazumder (Observer)

Audit type ☒ Initial Audit ☐ Re-audit ☐ Routine audit February 11, 2018

Factory Rating:

(mark with X) Red Orange Yellow

Qualified for Green rating –

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Appendix – SOP for audit providers COMPLIANCE SUMMARY

CoC Category Non compliance CoC Category Non compliance

Management

Systems/Licenses Yes No Subcontracting/ Homework Yes No

Forced Labour Yes No Discrimination/Abuse and

Harassment Yes No

Working Hours Yes No Health & Safety Yes No

Freedom of Association Yes No Fire Safety & Emergency Yes No

Child Labour/Juvenile

Workers Yes No Environment Yes No

Wages / Benefits Yes No Transparency Yes No

Employee Documents

and Records Yes No Yes No

Summary of Finding(s) Leading to Orange or Red Rating:

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BESTSELLER AUDIT CORRECTIVE AND PREVENTIVE ACTION PLAN

Appendix – SOP for audit providers OBSERVATION LIST

CoC CATEGORY DESCRIPTION OF NON-COMPLIANCE RATING RECOMMENDATION FACTORY COMMENT AGREED

(Y/N)

COMPLETION DATE

Management Systems/

Licences

01.In accordance with Bangladesh Labour Rules 2015, Rule-18:

It was noted through documents review and management interview that the facility management has not collected approval of organogram from Inspector General mentioning the class, number and type of the workers yet.

-It is recommended that the factory management should obtain the approved organ gram from concern authority.

We would take

corrective action. Yes March 31, 2018

02. In accordance with Bangladesh Labour Law, 2006, section: 111(8):

It was noted through document review and management interview that factory did not take working hour approval from local labour department.

-

It is recommended that the factory management should take working hour approval from local labour department.

We would take

Forced Labour No non-compliance was observed. _- Not applicable Not applicable Not _applicable Not applicable

Working Hours

01. In accordance with Gazette Notification No. - 40.00.0000. 016.32.009.11-47, published in March 30, 2016 for April 17, 2016 to October 16, 2016, 40.00.0000. 016.32.009.10-166, published in April 09, 2017 for April 17, 2017 to October 16, 2017 & 40.00.0000. 016.34.003.11-236, published in October 04, 2017 for September 20, 2017 to March 19, 2018:

It was noted through time record review management and workers interview that, the workers of the factory are working more than the legal overtime limits (4 hours daily, 24 hours weekly). Besides working hour is more than legal limit (72 hours weekly).

- It is recommended that the factory management should ensure the individual working hour of the factory within the legal limit.

We would take

corrective action. Yes

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Appendix – SOP for audit providers

Daily excessive overtime work status is as per below:

Month No. of workers

December 2018 _{03 out of 10 random sampled}

workers in finishing section.

As per the provided records, the average overtime hour of the workers in last 12 months (February 2017- January 2018) were noted as 60.03 hours per month.

Freedom of

Association No non-compliance was observed. - Not applicable Not applicable

Not

applicable Not applicable

Child Labour/Juvenile

Workers No non-compliance was observed. - Not applicable Not applicable

Not

Wages / Benefits No non-compliance was observed. - Not applicable Not applicable Not _applicable Not applicable

Employee Documents and Records

In accordance with Bestseller Requirements:

It was noted through documents review that randomly checked 17.5% nominee form not maintained in the employee’s personal records.

-It is recommended that management should maintained nominee form in all personal records of the employees.

We would take

Subcontracting/

Homework No non-compliance was observed. - Not applicable Not applicable

Not

Discrimination/Abuse

and Harassment No non-compliance was observed. - Not applicable Not applicable

Not

Health & Safety

In accordance with The Boilers Act 1923, Section-08: It was noted through document review that boiler license of the factory has expired from February 8, 2018. However, the factory management has applied and paid for the renewal for the same on January 25, 2018.

-

It is recommended that the factory management should take necessary action to collect the updated boiler licenses.

We would take corrective action.

Yes _{March 31, 2018}

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BESTSELLER AUDIT CORRECTIVE AND PREVENTIVE ACTION PLAN

Appendix – SOP for audit providers

applicable

Fire Safety & Emergency

02. In accordance with Bangladesh Labour Rules 2015 Section 55 (10):

It was noted through documents review and management interview that management does not have required number of fire fighters trained from Bangladesh fire service and civil defense authority. Current facility management has 110 number of fire fighters from Bangladesh Fire Service and Civil Defense and 200 from BGMEA), where required number is 417.

-

It is recommended that the factory management should ensure required number of fire fighters from the concern authority.

We would take

corrective action. Yes

December 31, 2018

Environment

In accordance with Bangladesh Labour Rules, 2015, Rules-40:

It was noted through plant tour that the overall housekeeping in ground floor (open areas) was not in proper manner. e.g. cork boxes were kept in disorganized way in an open place though management has a designated wastage area.

-It is recommended that the facility management should keep all wastage materials including plastic materials in an organized way by type and hazard.

We would take

corrective action. Yes February 28, 2018

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Appendix – SOP for audit providers Additional auditor notes: Nil

 

A Closing Meeting has taken place; the above-mentioned findings were discussed and agreed upon:

Md. Shamim Hossain, Humaira Tasnim, Md. Galib-ul-Azam and Sohalur Rahman Mazumder (Observer) Mr. Md. Feroz Kabir Khan – Head of people and culture Name of auditor, date and signature Name of factory representative and position

Name of auditor, date and signature Date and Signature

Factory stamp:

Guidance Auditor:

The CAP template should be used in the factory the following manner:

 State all non-conformities on the observation list prior to the closing meeting;

 During the closing meeting, go through the factory audit findings with the factory management, and try and agree upon a corrective/preventative action plan;  List factory comments – if any

 Make recommendation for remediation within the area violated  Agree on a deadline for the improvement within each field of violation  Both parties should sign and date the form after the closing meeting.