Corporate Social Responsibility Report

Region A

Cambodia

Indonesia

Thailand

Challenges faced in this region are primarily related to issues surrounding migrant workers. The occurrence of strikes related to minimum wage is a potential risk for interruption of production, while increases in order volumes and inappropriate use of contract labour has the potential to lead to excessive working hours and hiring issues. Undisclosed subcontracting is becoming more evident in countries such as Indonesia.

Region B

India

Sri Lanka

Some of the more prevalent concerns associated with this region include varying interpretations of the local law regarding contract workers and the lack of systems to verify compliance of wage and hiring procedures. Additional challenges include shortage of labour due to alternate employment opportunities, egregious working hours, undisclosed subcontracting and nonpayment of overtime premium. Sumangali bonded labour schemes are a challenge in India. We are working with stakeholders, such as the Tirupur Stakeholder’s Forum in Tirupur, India, where this practice is most prevalent, to implement additional guidelines on employment practices in factories supplying to Walmart.

Region C

Europe

In Eastern Europe, challenges include incomplete and inconsistent time systems, incomplete personnel files and poor compliance with requirements on fire drills such as adequate frequency and ensuring that all shifts are covered. The increasing number of migrant workers in the supply chain raises concerns of undisclosed deductions and nonpayment of wages.

Region D

China

Hong Kong

Japan

Philippines

Taiwan

Manufacturers in China continue to move production inland due to lower labour costs, furthering the labour shortage in the south. Additionally, increased cost of raw materials and increased demand for low-cost goods are contributing to factory closures. Lack of complete transparency to production practices has hindered our ability to implement meaningful change at the factory level through our development programs. Additionally, egregious working hours, manipulation of records and undisclosed subcontracting remain prevalent throughout the Far East region.

Region E

Central America

North America

South America

The Americas region continues to encounter challenges related to time systems, wages and employment practices. Development of effective management systems for tracking and recording working hours and production rates, as well as for hiring practices and

wage calculation methods, has led to significant improvements at fresh produce packing facilities. However, living conditions associated with temporary housing continue to be problematic in this industry.

Region F

Africa

Bangladesh

Israel

Jordan

Pakistan

Turkey

Frequent worker unrest, due to the declaration of the increased minimum wage, is currently affecting the garment sector in Bangladesh. There is increasing concern around the lack of fire safety awareness and training on fire prevention measures, in addition to structural safety issues, in these factories. Egregious working hours, manipulation of records and undisclosed subcontracting affect countries in this region, as well as migrant workforce issues which are prevalent, particularly in Jordan.