[Type text] 
 
 
 
 
FAIR LABOR ASSOCIATION  
2009 
INDEPENDENT EXTERNAL MONITORING REPORT   
 
COMPANY: Zephyr Graf-X, Hanesbrands 
COUNTRY: China 
FACTORY CODE: 130015414H 
MONITOR: Global Standards 
AUDIT DATE: October 16, 2009 
PRODUCTS: Knitted Hats, Knitted Scarves 
PROCESSES: Knitting, Linking, Packing, 
Inspection, Shipping 
NUMBER OF WORKERS: 32 
 
For an explanation on how to read this report, please visit the FLA website here. 
 
 
 
 
CONTENTS:  
Wages, Benefits and Overtime Compensation: General Compliance Wages, Benefits and Overtime 
Compensation ______________________________________________________________________ 3 
Freedom of Association: Right to Freely Associate __________________________________________ 4 
Health and Safety: General Compliance Health and Safety ____________________________________ 6 
Health and Safety: Evacuation Requirements and Procedure __________________________________ 7 
Health and Safety: Safety Equipment and First Aid Training ___________________________________ 8 
Health and Safety: Chemical Management and Training ______________________________________ 9 
Health and Safety: Machinery Maintenance and Worker Training _____________________________ 10 
Hours of Work: General Compliance Hours of Work ________________________________________ 11 
Hours of Work: Rest Day _____________________________________________________________ 12 
Hours of Work: Meal and Rest Breaks ___________________________________________________ 13 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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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) 
Uncorroborated Evidence of Noncompliance   
 
 
Explanation:  Due to the unannounced nature of the audit, the factory advised that they could not 
provide the documents related to health and safety; wages and working hours; or other 
related documents for verification, due to the absence of the personnel in charge. The 
documents, per management, could be retrieved only on Monday (October 19, 2009), 3 
days after the audit. Thus, no records could be reviewed on the audit date.  
Plan Of Zephyr has verified that wages and benefits records exist and are kept in files by the HR 
Action:  manager. The factory understands that even if the person in charge is not available, they 
will still need to provide access to all records.  
1. One additional finding: Wage slips for the workers do not include a distinction 
between regular hours worked and overtime hours worked. The factory has agreed to 
add this distinction.  
Deadline 02/14/2010  
Date:  
Supplier The factory has agreed to create a system that ensures records are available at all times.  
CAP:  
Supplier CAP 02/14/2010  
Date:  
Action Originally, the HR Manager was the only person with a key to the files containing factory 
Taken:  records and documents. The factory has created a system where each record will be 
copied and stored in a separate location, so that a second person has access. In addition, 
the factory manager will have a master key to the files.  
Plan No  
Complete:  
  
3 
 
 
 
 
Plan 
Complete 
Date:  
 
 
 
Freedom of Association: Right to Freely Associate  
FOA.2 Workers, without distinction whatsoever, shall have the right to establish and, subject only to the 
rules of the organization concerned, to join organizations of their own choosing without previous 
authorization. The right to freedom of association begins at the time that a worker seeks employment, 
and continues through the course of employment, including eventual termination of employment, and 
is applicable as well to unemployed and retired workers. (S) 
Noncompliance  
 
 
Explanation:  FLA Comment: The Chinese constitution guarantees Freedom of Association (FOA); 
however, the Trade Union Act prevents the establishment of trade unions independent of 
the sole official trade union - the All China Federation of Trade Unions (ACFTU). According 
to the ILO, many provisions of the Trade Union Act are contrary to the fundamental 
principles of FOA, including the non-recognition of the right to strike. As a consequence, 
all factories in China fall short of the ILO standards on the right to organize and bargain 
collectively. However, the government has introduced new regulations that could 
improve the functioning of the labor relations mechanisms. The Amended Trade Union 
Act of Oct. 2001 stipulates that union committees have to be democratically elected at 
members' assemblies and trade unions must be accountable to their members. The trade 
union has the responsibility to consult with management on key issues of importance to 
their members and to sign collective agreements. Trade unions also have an enhanced 
role in dispute resolution. In Dec. 2003, the Collective Contracts Decree introduced the 
obligation for representative trade unions and employers to negotiate collective 
agreements, in contrast to the previous system of non-negotiated administrative 
agreements.  
  
  
  
  
  
4 
 
 
 
  
Plan Of Currently, the union is made up of managers and supervisors, and is affiliated with the 
Action:  local government trade union branch. According to management, the official union 
activities are organized by this local town branch. The union representatives visit the 
factory to meet with workers; they listen to any problems or issues; and explain local 
labor laws. Independent of those activities, the factory union representatives will also 
help implement worker suggestions and solve worker complaints. Some examples 
include adding a ping pong table (partly funded by the union) in the break room/canteen 
and working with canteen cooks to alter the food preparation schedule, so food is served 
hotter and fresher. The workers enjoy the activities but don't know why or whom is 
putting them on; consequently, they don't feel like they are a part of it. Zephyr 
recommends that the union communicate with the workers more, and post notices 
about what they do. In addition, the factory management and/or factory union should 
proactively engage workers in forming their own worker's committee.  
Deadline 02/14/2010  
Date:  
Supplier The factory has agreed to develop a plan with the union to increase worker awareness 
CAP:  and participation.  
Supplier CAP 02/14/2010  
Date:  
Action  
Taken:  
Plan No  
Complete:  
Plan  
Complete 
Date:  
 
 
 
 
 
 
5 
 
 
 
Health and Safety: General Compliance Health and Safety  
H&S.1 Employers shall comply with all local laws, regulations and procedures concerning health and 
safety. (S) 
Uncorroborated Evidence of Noncompliance   
 
 
Explanation:  Due to the unannounced nature of the audit, the factory advised that they could not 
provide the documents related to health and safety; wages and working hours; or other 
related documents for verification, due to the absence of the personnel in charge. The 
documents, per management, could be retrieved only on Monday (October 19, 2009), 3 
days after the audit. Thus, no records could be reviewed on the audit date.  
Plan Of Zephyr has verified that health and safety records exist and are kept in files by the HR 
Action:  manager. The factory understands that even if the person in charge is not available, they 
will still need to provide access to all records.  
1. One additional finding: The factory does not have MSDS posted near the spot 
remover, nor is it on file. The factory has agreed to add MSDS and train workers on how 
to use the chemical.  
Deadline 02/14/2010  
Date:  
Supplier The factory has agreed to create a system that ensures records are available at all times.  
CAP:  
Supplier CAP 02/14/2010  
Date:  
Action Originally, the HR manager was the only person with a key to the files containing factory 
Taken:  records and documents. The factory has created a system where each record will be 
copied and stored in a separate location, so that a second person has access. In addition, 
the factory manager will have a master key to the files.  
Plan No  
Complete:  
Plan  
Complete 
Date:  
 
 
 
 
6 
 
 
 
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:  1. The self-check records of fire equipment are not updated every month. Records only 
kept in January, April and May 2009.  
2. The fire hose box is blocked by material in the inspection area.  
3. The warehouse aisle is blocked.  
Plan Of During a visit to the factory, Zephyr verified that the fire equipment was checked in 
Action:  November 2009. Also, the fire hose box and aisles were clear and unobstructed. To 
ensure that these changes are sustainable, the factory has agreed to a continuous 
improvement model (Plan-Do-Check-Act) for all health and safety issues.  
1. In the short term, the factory will immediately fix the health and safety issues found 
during the audit.  
2. In the long term, the factory has agreed to a plan based on the continuous 
improvement methodology.  
3. The first step is to create policy and procedures that will ensure a safe working 
environment. These procedures include: appointing a H&S supervisor; forming a H&S 
worker/management committee; while also defining job duties, mandates and meeting 
schedules. Zephyr recommends that part of the job duties include worker awareness and 
training.  
4. The second step is to verify that policy and procedure are followed. This includes 
completing a monthly checklist, along with reviewing the checklist, meeting minutes and 
any training or certifications.  
5. The last step is to allow for continuous improvement in the program. The factory can 
do this by setting targets and goals; collecting and analyzing performance data; and 
meeting at least annually with top management to discuss modifications, suggestions 
and improvements.  
  
7 
 
 
 
  
Deadline 11/09/2009  
Date:  
Action During a visit to the factory, Zephyr verified that the fire equipment was checked in 
Taken:  November 2009. Also, the fire hose box and aisles were clear and unobstructed.  
Plan Yes  
Complete:  
Plan 11/09/2009  
Complete 
Date:  
 
 
 
 
Health and Safety: Safety Equipment and First Aid Training  
H&S.10 All safety and medical equipment (such as fire fighting equipment, first aid kits, etc.) shall be 
available in sufficient numbers throughout the factory, maintained and stocked as prescribed and easily 
accessible to workers. A sufficient number of workers shall be trained in first aid and fire fighting 
techniques. (S) 
Noncompliance  
 
 
Explanation:  The first aid kit was observed to be empty.  
Plan Of During a visit to the factory, Zephyr verified that the first aid kit has been fully stocked. 
Action:  To ensure that the changes are sustainable, the factory has agreed to a continuous 
improvement model (Plan-Do-Check-Act) for all health and safety issues. See H&S.9 
above for details.  
Deadline 11/09/2009  
Date:  
Action During a visit to the factory, Zephyr verified that the first aid kit has been fully stocked.  
Taken:  
Plan Yes  
Complete:  
8 
 
 
 
  
Plan 11/09/2009  
Complete 
Date:  
 
 
 
 
Health and Safety: Chemical Management and Training  
H&S.13 All chemicals and hazardous substances shall be properly labeled and stored in accordance with 
applicable laws. Labels shall be placed in the local language and the language(s) spoken by workers, if 
different from the local language. Workers shall receive training, appropriate to their job 
responsibilities, concerning the hazards, risks and the safe use of chemicals and other hazardous 
substances. (S) 
Noncompliance  
 
 
Explanation:  According to on-site visit, there is no secondary protection container to prevent the 
leaking of chemical materials.  
Plan Of The factory has added a secondary protection container around the spot remover 
Action:  chemical. To ensure that the changes are sustainable, the factory has agreed to a 
continuous improvement model (Plan-Do-Check-Act) for all health and safety issues. See 
H&S.9 above for details.  
Deadline 12/28/2009  
Date:  
Action The factory has added a secondary protection container around the spot remover 
Taken:  chemical.  
Plan Yes  
Complete:  
Plan 12/28/2009  
Complete 
Date:  
 
 
 
 
9 
 
 
 
Health and Safety: Machinery Maintenance and Worker Training  
H&S.18 All production machinery, equipment and tools shall be regularly maintained and properly 
guarded. Workers shall receive training in the proper use and safe operation of machinery, equipment 
and tools they use. Employers shall ensure safety instructions are either displayed/posted near all 
machinery or are readily accessible to the workers. (S)  
Noncompliance  
 
 
Explanation:  1. Workers do not use the safety guards on overlock machines.  
2. Some sewing machines do not have needle protection guards.  
3. There are no protection covers on knitting machines.  
4. Cutters and scissors are not fixed on the working tables.  
5. The maintenance card on each machine was only recorded in January and May 2009.  
Plan Of 1. The factory has instructed the workers on how and why to use the safety guards on 
Action:  the overlock machines.  
2. The factory has installed the remaining needle guards on the sewing machines.  
3. The factory has added protection covers to the knitting machines.  
4. Cutters and scissors are now affixed to the working tables.  
5. The machines are receiving monthly maintenance checks.  
To ensure that these changes are sustainable, the factory has agreed to a continuous 
improvement model (Plan-Do-Check-Act) for all health and safety issues. See H&S.9 
above for details.  
Deadline 12/28/2009  
Date:  
Action 1. The factory has instructed the workers on how and why to use the safety guards on 
Taken:  the overlock machines.  
2. The factory has installed the remaining needle guards on the sewing machines.  
3. The factory has added protection covers to the knitting machines.  
4. Cutters and scissors are now affixed to the working tables.  
5. The machines are receiving monthly maintenance checks.  
10 
 
 
 
  
Plan Yes  
Complete:  
Plan 12/28/2009  
Complete 
Date:  
 
 
 
Hours of Work: General Compliance Hours of Work  
HOW.1 Employers shall comply with all local laws, regulations and procedures concerning hours of 
work, public holidays and leave. (S) 
Uncorroborated Evidence of Noncompliance   
 
 
Explanation:  Due to the unannounced nature of the audit, the factory advised that they could not 
provide the documents related to health and safety; wages and working hours; or other 
related documents for verification, due to the absence of the personnel in charge. The 
documents, per management, could be retrieved only on Monday (October 19, 2009), 3 
days after the audit. Thus, no records could be reviewed on the audit date.  
Plan Of Zephyr has verified that hours of work records exist and are kept in files by the HR 
Action:  manager. The factory understands that even if the person in charge is not available, they 
will still need to provide access to all records.  
Deadline 02/14/2010  
Date:  
Supplier The factory has agreed to create a system that ensures records are available at all times.  
CAP:  
Supplier CAP 02/14/2010  
Date:  
Action Originally, the HR Manager was the only person with a key to the files containing factory 
Taken:  records and documents. The factory has created a system where each record will be 
copied and stored in a separate location, so that a second person has access. In addition, 
the factory manager will have a master key to the files.  
Plan No  
Complete:  
11 
 
 
 
  
Plan 
Complete 
Date:  
 
 
 
Hours of Work: Rest Day  
HOW.2 Workers shall be entitled to at least one day off in every seven-day period. If workers must work 
on a rest day, an alternative day off must be provided within that same seven-day period or 
immediately following the seven-day period. (P) 
Noncompliance  
 
 
Explanation:  According to time cards from October, the workers do not punch cards during their 
lunch break. Also, the workers do not take one day off every 7 working days. This is 
verified through October's time cards from October 5 - 15.  
Plan Of Zephyr has discussed the importance of accurate time records with the factory, for 
Action:  workers (to be paid correctly), for the factory (to protect itself in the case of a dispute), 
and for auditors/brands (to trust the information being given to them). Zephyr 
recommends that the factory creates policy and procedure for workers punching time 
cards. It takes some discipline on the factory's part to do this, and to make sure workers 
are not working on their rest day. If employees are working on rest days, Zephyr 
recommends that another day be scheduled for them.  
Deadline 02/14/2010  
Date:  
Supplier The factory has agreed to create policy and procedure. It is also researching closing the 
CAP:  factory on Sundays to ensure that workers receive their rest day.  
Supplier CAP 02/14/2010  
Date:  
Action  
Taken:  
Plan No  
Complete:  
  
12 
 
 
 
 
Plan 
Complete 
Date:  
 
 
 
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)  
Noncompliance  
 
 
Explanation:  According to October's time cards, workers did not punch in or out during their lunch 
breaks.  
Plan Of Zephyr has discussed the importance of accurate time records with the factory, for 
Action:  workers (to be paid correctly), for the factory (to protect itself in the case of a dispute) 
and for auditors/brands (to trust the information being given to them). Zephyr 
recommends that the factory creates policy and procedure for workers punching time 
cards. It takes some discipline on the factory's part to do this, and to make sure workers 
are not working on their rest day. If employees are working on their rest day, Zephyr 
recommends that another day be scheduled for them.  
Deadline 02/14/2010  
Date:  
Supplier The factory has agreed to create policy and procedure. It is also researching closing the 
CAP:  factory on Sundays to ensure that workers receive their rest day.  
Supplier CAP 02/14/2010  
Date:  
Action  
Taken:  
Plan No  
Complete:  
Plan  
Complete 
Date:  
 
13 
 
 
 
 
 
 
 
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