Supplier name:
Fasa América Latina Participações Societárias S/A
Site country:
Brazil
Site name:
Farfri Indústria e Comércio Ltda.
Parent Company name (of the site):
---
SMETA Audit Type:
Date of Audit
2–Pillar
4–Pillar
August 11 and 12, 2015
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
1
Audit Company Name:
SGS SSC
Report Owner (payee):
Farfri Indústria e Comércio Ltda.
Sedex Company Reference: (only available on Sedex System)
S000000087053
Sedex Site Reference: (only available on Sedex System)
P000000192392
Audit Conducted By
Commercial
Purchaser
NGO
Retailer
Trade Union
Brand Owner
Multi–stakeholder
Combined Audit (select all that apply) SGS
Auditor Reference Number: (If applicable)
--
SMETA Declaration
I declare that the audit underpinning the following report was conducted in accordance with SMETA best practice guidance
version 5.0. Any exceptions to this are recorded here:
(1) A SMETA audit was conducted which included some or all of Labour Standards, Health & Safety, Environment and
Business Ethics. The SMETA Best Practice Methodology v.5.0 Dec 2014 was applied. The scope of workers included
all types at the site e.g. direct employees, agency workers, workers employed by service providers and workers
provided by other contractors.
(2) The audit scope was against the following reference documents
2-Pillar SMETA Audit
ETI Base Code
SMETA Additions
o
o
o
Management systems and code implementation,
Entitlement to Work & Immigration,
Sub-Contracting and Home working,
o
o
o
2-Pillar requirements plus
Additional Pillar assessment of Environment
Additional Pillar assessment of Business Ethics
4-Pillar SMETA
The Customer’s Supplier Code (Appendix 1)
(3) Where appropriate non-compliances were raised against the ETI code / SMETA Additions & local law and recorded as
non-compliances on both the audit report, CAPR and on Sedex.
(4) Any Non-Compliance against customer code shall not be uploaded to Sedex. However, in the CAPR these ‘Variances
in compliance between ETI code / SMETA Additions/ local law and customer code’ shall be noted in the observations
section of the CAPR.
Any exceptions to this must be recorded here (e.g. different sample size):
Auditor Name(s) (please list all including all interviewers): Ubiratan Schuch Pinto – Lead Auditor
Lead auditor: Ubiratan Schuch Pinto – Lead Auditor
Team auditor: Ubiratan Schuch Pinto – Lead Auditor
Interviewers: Ubiratan Schuch Pinto – Lead Auditor
Date: August 11 and 12, 2015
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
2
Non–Compliance Table
Area of Non–Conformity
Issue
Record the number
of issues by line*:
(Only check box when there is a non–conformity,
and only in the box/es where the non–conformity
can be found)
(please click on the issue title to go direct to
the appropriate audit results by clause)
ETI Base
Code
Local Law
Additional
Elements
(i.e. not part
of ETI code )
NC
Obs
GE
0
Management systems and code
implementation
1
1
Employment Freely Chosen
-
-
-
2
Freedom of Association
-
-
-
3
Safety and Hygienic Conditions
8
1
4
Child Labour
-
-
-
5
Wages and Benefits
-
-
-
6
Working Hours
7
Discrimination
-
-
-
8
Regular Employment
-
-
-
8A
Sub–Contracting and
Homeworking
-
-
-
9
Harsh or Inhumane Treatment
-
-
-
10A
Entitlement to Work
-
-
-
10B2
Environment 2–Pillar
10B4
Environment 4–Pillar
1
-
-
10C
Business Ethics
1
*Please note the table above records the total number of Non compliances (NC), Observations (Obs) and Good
Examples (GE). This gives the reviewer an indication of problem areas but does not detail severities of each issue
– Reviewers need to check audit results by clause.
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
3
Summary of Findings
Summary of main findings: (positive and negative)
(Please give a short summary of the main findings per clause)
Company has good facilities with good control of hygienic toilets, kitchen facilities and factories. All legal certificates
required for operation, such as environmental license and permit from the Fire Department, are available. Individually
interviewed six workers and four group interview: all the workers interviewed reported good working conditions and regular
working conditions (formal work registration, payment of labor and other benefits in accordance with the rules in relation to
formal work. payment of salaries and employee benefits - were sampled four workers in two different months and
researched vacation additional payments and others, and was found in normal according to Brazilian legislation The
company has code of ethics with the prohibition of discrimination practices,. corruption and other, and it is shown to the
workers during the time of integration. Environmental management was evidenced by waste management practices,
effluent treatment. Health management and occupational safety are being implemented, and that there was noncompliance related to OSH management; important to note that the company has had several previous versions of this
event, related non-compliances identified. Regarding the payment of wages all interviewed workers receive on average
20% higher than the regional minimum wage.
Positives: relationship between workers and managers, practice of rainwater recovery, factory storage conditions.
Study points: health and safety management at work focusing on the legal requirements involved
Short summary: main findings per clause
Management systems and code implementation: Existing code of ethics and implemented.
Employment Freely Chosen.
Freedom of Association: There is no restriction on union activity.
Safety and Hygienic Conditions: necessary emphasis on health management and safety
Unconformities identified, numbers:
3.1 Not available assessment unifilar chapel compared to luminance parameters, sound pressure and exhaustion capacity
(Legal requirements NR-17, NR-15 and ACGIH )
3.2 Emergency exit doors allowing easy opening not from inside the establishment (Legal requirements NR-23 (2011)
3.3 Factory stairs/other units of Company do not have footers at odds with Legal requirements NR-12 (2015) Article 12.70
3.4 Not available Respiratory Protection Program in accordance with Instruction Legal requirements INSS 01 April 1994.
3.5 Not available. Hearing Conservation Program PCA in violation Annex I Schedule II Legal requirements NR-07 (2013)
3.6 Not available procedure for management of confined spaces, Legal requirements NR-33 (2012)
3.7 Not available procedure for labor management in height., Legal requirements NR-35 (2012
3.8 The organization has no storage facilities, disposal, containment or spill of hazardous chemicals for use in the
Chemical Analysis Laboratory, Legal requirements ILO Convention No. 170
Child Labour: All workers under 18 years of age, are learning under contract in accordance with Brazilian legislation.
Wages and Benefits: The wages paid are above the planned minimum; Additional such as overtime, night work and others
are being paid according to the Brazilian legislation and the impact of associated taxes.
Working Hours: Not identified excess overtime in a systemic way; there is a requirement of the organization it assessed
the adoption of preventive measures to avoid exceeding the nr overtime permitted by Brazilian law. The journey of hours
and the rest period is in accordance with Brazilian law.
Discrimination: no evidence during interviews with workers
Regular Employment: According to legislation
Sub-Contracting and Home working: The organization does not make outsourcing stages of its production process. Thus,
there is no evidence of outsourced process or work in homes of workers
Harsh or Inhumane Treatment: No evidence during interviews with workers
Entitlement to Work: The company has no foreign workers
Environment 4-Pillar: Evidenced environmental management of waste and effluents. There is a need for measuring
external noise.
Unconformities identified, numbers:
10B.1 Not available evidence external noise assessment in accordance Brazilian law CONAMA 01/90 NBR 10151: 2000
Business Ethics: The main suppliers are large companies, which already have implemented ethical codes.
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
4
Audit Details
Audit Details
A: Report #:
# 29673
B: Time in and time out: (SMETA Best Practice
Guidance/Measurement Criteria recommends 9–17 hrs.
if any different state why in the SMETA declaration )
August 11, 2015 Time in: 08:00 Time out: 17:00
August 12, 2015 Time in: 08:00 Time out: 12:00
December 11, 2015 Time in: 08:00 Time out: 12:00
C: Number of Auditor Days Used:
1 auditor x 1,5 days = 1,5 MD
D: Audit type:
Full Initial
Periodic
Follow–up Audit # 1
Partial Follow–Up
Partial Other – Define
E: Was the audit announced?
Announced
Semi – announced: Window detail:
Unannounced
F: Was the Sedex SAQ available for review?
weeks
Yes
No
G: Any conflicting information SAQ/Pre-Audit
Info to Audit findings?
Yes
No
If Yes, please capture detail in appropriate audit by clause
H: Auditor name(s) and role(s):
Ubiratan Schuch Pinto – Lead Auditor
Ubiratan Schuch Pinto – Lead Auditor
I: Report written by:
Ubiratan Schuch Pinto – Lead Auditor
J: Report reviewed by:
Elaine C. Perocco Dias
K: Report issue date:
August 20, 2015
L: Supplier name:
Fasa América Latina Participações Societárias S/A
M: Site name:
Farfri Indústria e Comércio Ltda.
N: Site country:
Brazil
O: Site contact and job title:
Fabricio Domeneck Quality Assistant
P: Site address:
Estrada RST453 km 81,4 São Luiz de Castro Boa Vista do Sul RS
Site phone:
+ 55 54 3435 6400
Site fax:
--
Site e–mail:
fabricio.d@faros.ind.br
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
5
Q: Applicable business and other legally
required licence: for example, business license
no, and liability insurance
R: Products/Activities at site; example: garment
manufacture/electrical/ toy/grower
Environmental permit FEPAM, LO 04931/2015-DL issued
Fire permit PPCI 1471/1, average risk, valid until June 2016
Fuel station permit by ANP Brazilian Oil Agency valid until
November2015
Flour viscera and bird feathers
Oil from chicken birds
S: Audit results reviewed with site
management?
Yes
T: Who signed and agreed CAPR
Simone Laste Manager
U: Did the person who signed CAPR have
authority to implement changes?
yes
V: Present at closing meeting (Please state
Simone Laste Manager
Fabricio Domeneck Quality Assistant
Freddy Kaufmann Engineer
name and position, including any workers/ union
reps/worker reps):
W: What form of worker representation /union
is there on site?
Union (name)
Worker Committee
Other (specify)
None - There are no worker representation in plant
X: Are any workers covered by CBA
Collective Bargaining Agreement
Yes
No
Y: Previous audit date:
August 11 and 12, 2015
SMETA 2–pillar
Z: Previous audit type:
SMETA 4–pillar
Other
Full Initial
Periodic
Full Follow–Up Audit
Partial Follow–Up
Partial Other*
*If other, please define:
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
6
Audit Scope/Actual Results
Criteria
A: Standard/Contracted work hours:
(Maximum legal and actual required working
hours excluding overtime, please state if possible
per day, week and month)
B: Legal Overtime hours:
(Maximum legal and actual overtime hours,
please state if possible per day, week and month)
C: Legal age of employment:
(Minimum legal and actual minimum age at site)
D:
Legal
minimum
standard/contracted hours:
wage
for
(Minimum legal and actual minimum wage at site,
please state if possible per hr, day, week and
month)
E: Legal minimum overtime wage:
(Minimum legal and actual minimum overtime
wage at site, please state if possible per hr ,day,
week and month)
Local Law
Actual at the Site
(Please state legal
requirement)
(Record site results against the law)
Legal maximum:
Brazilian Labor
Law (CLT)
Article 59
Factory area
36 hours per month
Yes
No
Legal maximum:
Brazilian Labor
Law (CLT)
Article 59
Federal
Constitution
Laws
Article 7º
Incise XIII
2 hours per day
Yes
No
Legal minimum:
Brazilian Labor
Law (CLT)
Article 403
20 years old
Legal minimum:
Brazilian Labor
Law (CLT)
Article 611
R$ 1.061,00 per month
Yes
No
Legal minimum:
CLT
Article 59
§ 1º
50% plus/hour
Amount paid for overtime performed
1) amount paid overtime performed
for Cleaning Services Assistant due
to the salary of R$ 1,550 paid July
2015, additional 50% for each extra
hour performed for holding 16.05
overtime during period in question
was paid to the employee in the
amount of R$ 169.62;
2) amount paid overtime performed
for Maintenance Mechanic due to
salary of R$ 2,486 paid July 2015,
additional 50% for each extra hour
performed for holding 12.70
overtime in the period in question
was paid to the employee in the
amount of R $ 215.26
Yes
No
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
Is this part
of a
Collective
Bargaining
Agreement?
7
Audit Scope
(Please select the code and additional requirements that were audited against during this audit)
2–Pillar Audit
10B4: Environment 4–Pillar
10C: Business Ethics
All groups of workers are included in the scope of this audit such as; Direct employees, Casual
and agency workers, Workers employed by service providers such as security and catering
staff as well as workers supplied by other contractors.
Note: The main focus of this ethical audit is on the ETI Base Code and local law. The additional elements will not be audited in
such depth or scope, but the audit process will still highlight any specific issues.
This report provides a summary of the findings and other applicable information found/gathered during the social audit
conducted on the above date only and does not officially confirm or certify compliance with any legal regulations or industry
standards. The social audit process requires that information be gathered and considered from records review, worker
interviews, management interviews and visual observation. More information is gathered during the social audit process than is
provided here. The audit process is a sampling exercise only and does not guarantee that the audited site prior, during or post–
audit, are in full compliance with the Code being audited against. The provisions of this Code constitute minimum and not
maximum standards and this Code should not be used to prevent companies from exceeding these standards. Companies
applying this Code are expected to comply with national and other applicable laws and where the provisions of law and this
Code address the same subject, to apply that provision which affords the greater protection. The ownership of this report
remains with the party who has paid for the audit. Release permission must be provided by the owner prior to release to any
third parties.
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
8
Audit Overview
Audit Overview
Management
Audit attendance
Worker Representatives
Senior management
Worker Committee
representatives
Union representatives
A: Present at the opening meeting?
Yes
No
Yes
No
Yes
No
B: Present at the audit?
Yes
No
Yes
No
Yes
No
C: Present at the closing meeting?
Yes
No
Yes
No
Yes
No
D: If Worker Representatives were not
present please explain reasons why
--
(only complete if no worker reps present)
E: If Union Representatives were not
present please explain reasons why:
Company does not have union representatives and others as workers
(only complete if no union reps present)
F: Site description:
(Include size, location and age of site. Also
include structure and number of buildings)
G: Site function:
H: Month(s) of peak season:
Production
Building no
1
2
3
4
Is this a shared
building?
Description
Factory
Final Product Storage
Final Inspection
General Management
Remark,
if any
2700 m2
800 m2
50 m2
100 m2
No
Agent
Factory Processing/Manufacturer
Finished Product Supplier
Grower
Homeworker
Labour Provider
Pack House
Primary Producer
Service Provider
Sub–Contractor
There is no peak season.
(if applicable)
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
9
I: Process overview:
(Include products being produced, main operations, number of production lines, main equipment used)
Receiving raw material (feathers of animals and viscera), cooking and drying with subsequent grinding process and
packaging of the final product. Major equipment: cooking tunnel, drying, grinder and product packer.
J: Attitude of workers:
(Include their attitude to management, workplace and the interview process.
Both positive and negative information should be included)
Note: Do not document any information that could put workers at risk
All workers showed up quite requested the audit process. They presented very quiet and calm during individual and
group interviews. They declare all professional activities in satisfaction in the audited company. There was no
complaint or complaint against the company.
K: Attitude of workers committee/union reps:
(Include their attitude to management, workplace and the interview process.
Both positive and negative information should be included)
Note: Do not document any information that could put workers at risk
Attitude of the Workers' Committee: the Commission were evaluated workers engaged in preventing accidents
(CIPA - Internal Commission for Accident Prevention). They declare good relationship with immediate supervisor
and director; without evidence of any complaint relating to labour and other. It evidenced the presence of
emergency response and other routines of emergencies and health and safety practices. With respect to union
representation and freedom: it was evidenced freedom and no restrictions the presence of unions.
L: Attitude of managers:
(Include attitude to audit, and audit process.
Both positive and negative information should be included)
The High Directors of the company extremely well received the SMS and its representative with great transferring
and receiving indications of the need for treatment of non-conformities and observations, and present action plans
for the non-conformities and observations. Regarding the main point of this study identified in audit - health
management practice and safety - is ongoing process of implementing the necessary practices and assessment of
applicable legal requirements, and the required training events have been conducted of workers.
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
10
Key Information
Key Information
(click on the key information title to go to appropriate section of the report)
A: Do all workers (including migrant workers)
have contracts of employment/employment
agreements? (Go to clause 8 Regular Employment)
B: Are maximum standard/contracted
working hours clearly defined in
contract/employment agreements?
Yes
No
All workers interviewed have regular work according to Brazilian law
Yes: maximum 44 hours per week
No
(Go to clause 8 – Regular Employment)
C: Were appropriate records available to
verify hours of work and wages?
Yes - Recorded in wage roll.
No
(Go to clause 5 – Living Wage)
D: Were any inconsistencies found?
(if yes describe nature)
Yes
No
(Go to Wages Table)
E: For the lowest paid production workers,
are wages paid for standard/contracted
hours (excluding overtime) below or above
the legal minimum?
(Go to clause 5 – Living Wage)
F: % of piece rate workers: (if applicable)
G: Do the standard/contracted hours stated
in a contract/employment agreement exceed
the law or 48 hours per week?
Poor record keeping
Isolated incident
Repeated occurrence
Wages found:
Please indicate the breakdown of workforce
according to earnings:
Below legal min
Meet
Above
____% of workforce earning under min wage
____% of workforce earning min wage
100 % of workforce earning above min wage
Not applicable
Yes
No
(Go to clause 6 – Working hours)
H: If yes, what are the standard/contracted
hours per week as stated in the contract/
employment agreement?
--- hrs/week
Approx. 100 % of ALL workers on these contacted
hours
(Go to clause 6 – Working hours)
I: Combined hours (standard/contracted plus
overtime = total hours) over 60 per week
found? (Go to Working Hours Analysis)
J: Are workers provided with 1 day off in
every 7-day-period, or 2 in 14-day-period
(where the law allows)?
K: Are the correct legal overtime premiums
paid?
(Go to Wages Table)
Yes
No
Yes
No
If ‘No’, please explain:
Yes
No
N/A
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
11
L: Please state what actual OT is paid.
(As a percentage of the workers standard rate)
(Go to Working Hours Analysis)
M: Is there any night production work at the
site?
Please give details of overtime premium as a % of standard wages:
0%
1% – 115%
116% – 124%
125% – 149%
150% – 199%
200%+
Overtime are by bay tax of 50 % increase and 100 % increase
Yes
No
N: % of workers living in site provided
accommodation (if applicable):
0%
O: Age of youngest worker found:
Age of youngest worker found: 20 years old. All workers who perform
professional duties over 18 years. Exception for young people under
18 years of age, engaged learning functions with monitoring of the
Brazilian legal agencies and mandatory school course SENAI technical
school. Apprentices receive payment as the regional minimum wage
and are not exposed to unhealthy situations.
(Go to clause 4 – Child labour)
P: Workers under 18 subject to hazardous
work assignments? (Go to clause 3 Health Safety)
% of under 18’s at this site (of total workers)
Q: What form of worker representation/union
is there on site?
(Go to clause 2 – Freedom of Association)
R: Is it a legal requirement to have a union?
(Go to clause 2 – Freedom of Association)
S: Is It a legal requirement to have a workers
committee?
(Go to clause 2 – Freedom of Association)
T: Is there any other form of effective
worker/management communication
channel? (Other than union/worker committee)
(Go to clause 2 – Freedom of Association)
U: Are there any External Processes?
(Go to clause 8A – Sub–contracting and Home
working)
Yes
No
maximum 1 %
Union : Caxias do Sul Food Union workers
Worker Committee
Other (specify)
None
Yes
No
Yes. It revealed the presence of internal Commission for the
Prevention of Accidents (CIPA - Brazilian legislation NR-05), operating
in accordance with the provisions of the legislation in question.
No
Yes
No
Describe: There is a channel of communication via claims record
collection box, doubts and other types of questioning. An employee
who wishes to communicate with senior management of the company
records in specific form your need and puts you in the collection box in
question. This channel has confidentiality protection system and
guarantee that there will not be any penalty for the worker.
Sub–Contracting
Homeworking
Other External Process
No external processes
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
12
Management Systems
Management Systems:
A: Nationality of Management
Brazilian
B: Gender breakdown of Management +
Supervisors (Include as one combined group)
Male: 90 %
Female: 10 %
C: Majority nationality of workers
All brazilian
D: Number of workers leaving in last 12 months
as a % of average total number of workers on site
over the year (annual worker turnover)
Maximum 1 %
E: Were accurate records shown at the first
request?
Yes
No
F: If No, why not?
---
G: In the last 12 months, has the site been subject
to any fines/prosecutions for non–compliance to
any regulations?
Yes
No
Please describe:
H: Do policies and/or procedures exist that reduce
the risk of forced labour, child labour,
discrimination, harassment & abuse?
Yes
No
Please describe:
I: If Yes, is there evidence (an indication) of
effective implementation? Please give details.
Yes. Risk of forced labour, child labour, discrimination,
harassment & abuse are prohibited by current code of ethics.
J: Have managers and workers received training
in the standards for forced labour, child labour,
discrimination, harassment & abuse?
Yes
No
Please describe: The current code of ethics was implemented
with all company employees, from top management to workers at
the plant, ensuring that such practice is forbidden in the company.
K: If Yes, is there evidence (an indication) that
training has been effective e.g. training records
etc.? Please give details
It was evidenced ethics code implementation during first working
L: Are there published, anonymous and/or open
channels available for reporting any violations of
Labour standards and H&S or any other
rd
grievances to a 3 party?
Yes
No
Please describe: There is a internal box for collecting complains
codes,
LM: If Yes, are workers aware of these channels?
Please give details.
Yes. During the integration of the code of ethics is presented to
worker the communication channel available to conduct
complaints in case the claims of receipt of cash and the assigned
form filling, and the guarantees of confidentiality and complaints
record anonymously.
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
13
N: Have health and safety risks been identified
e.g. through internal audits, formal risk analysis
process, worker involvement etc.?
Yes
No
Please describe: According with map risk ( Brazilian law NR-05).
The organization has no internal audit and formal risk analysis
process
O: If Yes, has effective action been taken to
reduce or eliminate these risks?
Yes, the map risk is studying in CIPA Analyses. And besides,
there are a lot of tags with personal protective equipments
remarks along the factory.
P: Are accidents recorded?
Yes
No
Please describe: It was evidenced the accident record of Mr. VB,
dated of March 2012.
Q: Has the auditor made a simple calculation to
compare capacity with workers’ work load in order
to identify possible unrecorded work hours?
Yes
No
Please describe: At the beginning of the audit process it
confirmed the nr of staff, confirming with the design of the audit
with the provisions in the rules of SMETA. It was identified the
correct sizing identified
R: Does the site have all required land rights
licenses and permissions (see SMETA
Measurement Criteria)?
Yes.
S; Does the site have any internationally
recognised system certifications e.g. ISO 9000,
14000, OHSAS 18000, SA8000 (or other social
audits).
The site have no internationally recognised system certifications
Please detail (Number and date).
T: Is there a Human Resources
manager/department?
If Yes, please detail.
Yes
No
Please describe: The Company has a Human Resources
manager, Ms Josilene Homercher
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
14
Worker Analysis
Worker Analysis
Local
Migrant
Total
Permanent
Temporary
Worker numbers male
39
-
Worker numbers female
5
Total
Number of Workers
interviewed
Agency
Home
workers
Permanent
Temporary
Agency
2
-
-
-
-
41
-
-
-
-
-
-
5
44
-
-
-
-
-
-
46
10
-
-
-
-
-
-
10
Contractors: (Individuals supplying workers to site with the workers paid by contractors, not by site)
A: Any contractors on site?
B: If Yes, how many workers supplied by contractors
C: Are all contractor workers paid according to law?
If Yes, Please give evidence for contractor workers
being paid according to law:
Yes
No
Yes
No
2
Hiring contract workers to balance security service JRGF
pay R$ 1,769.00 LAA pay R $ 1,769.00. Supplier of hand
Sell Janitorial Services Ordinance Ltda. Evidenced the
correct payment and in accordance with Brazilian law.
Migrant Workers: (Please see SMETA Best Practice Guidance and Measurement Criteria for definitions of migrant workers)
D: Originating Locations/Countries:
No foreign workers.
E: Type of work undertaken by migrant workers :
No foreign workers.
F: Were migrant workers recruited through an agency?
If yes, please give details.
Yes
No
Please describe: No foreign workers.
If Yes, is there a contract with the agency? Provide
details of agencies/contractual arrangements including
any fees lodged during the recruitment process.
No foreign workers.
G: Does the site have a system for checking labour
standards of agencies? If yes, please give details.
Yes
No
Please describe:
H: Percentage of migrant workers in company provided
accommodation:
No foreign workers.
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
15
Audit Results by Clause
0: Managements system and Code Implementation
0.1 Suppliers are expected to implement and maintain systems for delivering compliance to this Code.
0.2 Suppliers shall appoint a senior member of management who shall be responsible for compliance with the Code.
0.3 Suppliers are expected to communicate this Code to all employees.
0.4 Suppliers should communicate this code to their own suppliers and, where reasonably practicable, extend the principles of
this Ethical Code through their supply chain.
Current Systems and Evidence Examined
To complete ‘current systems’ Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record
what controls and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible
for the management of this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems.
Current systems: The supplier has developed and implemented code of ethics. The senior member responsible
for managing the implementation process and compliance with the code of the unit is the unit of management. The
code communication step for employees is held during the stage of integration of the same enterprise. Regarding
the code of communication for their own suppliers, the company has suppliers who already have their code of
ethics and should ensure that all their suppliers, not only the main, receive the same.
Evidence examined – to support system description
(Documents examined & relevant comments. Include renewal/expiry date where appropriate):
Code of Ethics version 2015; implementation of evidence with the workers; communication channel - collection box
- available.
Non–compliance:
1. Description of non–compliance: NIL
NC against ETI/Additional Elements
Local law and/or ETI requirement: NIL
Recommended corrective action: NIL
NC against Local Law
Objective evidence
observed:
NIL
Observation:
Description of observation: Implementation of the code of ethics.
Local law or requirement ETI: Smeta Code
Comments: The organization should take efforts to ensure the implementation of the
code of ethics with all its supply chain. Currently, only covers major suppliers and
suppliers of raw materials.
Objective evidence
observed:
Implementation
Good Examples observed:
Description of Good Example (GE): NIL
Objective evidence observed: NIL
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
16
1: Employment is Freely Chosen
ETI
1.1 There is no forced, bonded or involuntary prison labour.
1.2 Workers are not required to lodge “deposits” or their identity papers with their employer and are free to leave their employer
after reasonable notice.
Current Systems and Evidence Examined
To complete ‘current systems’ Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls
and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of
this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems.
Current systems:
Well implemented without the need for corrective action.
It was not identified any complaint about forced labor or the need for prior deposit of assets or withholding
documents such as working papers.
Evidence examined – to support system description
(Documents examined & relevant comments. Include renewal/expiry date where appropriate):
Evidence obtained in interviews with workers and the evaluation of their employment contracts.
Non–compliance:
1. Description of non–compliance: NIL
NC against ETI/Additional Elements
Local law and/or ETI requirement: NIL
Recommended corrective action: NIL
NC against Local Law
Objective evidence
observed:
NIL
Observation:
Description of observation: NIL
Local law or ETI requirement: NIL
Comments: NIL
Objective evidence
observed: NIL
Good Examples observed:
Description of Good Example (GE): NIL
Objective evidence observed: NIL
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
17
2: Freedom of Association and Right to Collective Bargaining are Respected
ETI
2.1 Workers, without distinction, have the right to join or form trade unions of their own choosing and to bargain collectively.
2.2 The employer adopts an open attitude towards the activities of trade unions and their organisational activities.
2.3 Workers’ representatives are not discriminated against and have access to carry out their representative functions in the
workplace.
2.4 Where the right to freedom of association and collective bargaining is restricted under law, the employer facilitates, and
does not hinder, the development of parallel means for independent and free association and bargaining.
Current Systems and Evidence Examined
To complete ‘current systems’ Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls
and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of
this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems.
Current systems:
Well Implemented without the need for corrective action.
No restriction was evidenced freedom of association, nor any union access impediment to business unit.
Evidence examined – to support system description
(Documents examined & relevant comments. Include renewal/expiry date where appropriate):
Evidence obtained in interviews with workers and the evaluation of their employment contracts.
Company workers exercising their right to join the trade union of the region without any kind of restriction of
freedom by exercising their choice, according to the signed collective bargaining agreement in force, the year 2015.
Non–compliance:
1. Description of non–compliance: NIL
NC against ETI/Additional Elements
Local law and/or ETI requirement: NIL
Recommended corrective action: NIL
NC against Local Law
Objective evidence
observed: NIL
Observation:
Description of observation: NIL
Local law or ETI requirement: NIL
Comments: NIL
Objective evidence
observed: NIL
Good Examples observed:
Description of Good Example (GE): NIL
Objective evidence observed: NIL
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
18
A: Name of union and union
representative, if applicable:
Caxias do Sul Feed Industry
Union
Is there evidence of free elections?
Yes
No
N/A
B: If no union what is parallel means of
consultation with workers e.g. worker
committees?
NIL
Is there evidence of free elections?
Yes
No
N/A
C: Were worker representatives/union
representatives interviewed
Yes
No
If Yes, please state how many:
D: State any evidence that
union/workers committee is effective?
Employee stated during interviews although the company have a
positive attitude towards the union, they are not interest on union
agreement issues
Specify date of last meeting; topics covered;
how minutes were communicated etc.
E: Are any workers covered by
Collective Bargaining Agreement (CBA)
F: If Yes what percentage by trade
Union/worker representation
G: If Yes, does the Collective
Bargaining Agreement (CBA) include
rates of pay
Yes
No
100 % workers covered by Union
CBA
____% workers covered by worker
rep CBA
Yes
No
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
19
3: Working Conditions are Safe and Hygienic
ETI
3.1 A safe/hygienic working environment shall be provided, bearing in mind prevailing knowledge of industry and of any specific
hazards. Adequate steps shall be taken to prevent accidents/injury to health arising out of, associated with, or occurring in the
course of work, by minimising, so far as is reasonably practicable, the causes of hazards inherent in the working environment.
3.2 Workers shall receive regular and recorded Health & Safety training, and such training shall be repeated for new or
reassigned workers.
3.3 Access to clean toilet facilities and to potable water, and, if appropriate, sanitary facilities for food storage shall be provided.
3.4 Accommodation, where provided, shall be clean, safe, and meet the basic needs of the workers.
3.5 The company observing the code shall assign responsibility for Health & Safety to a senior management representative.
Current Systems and Evidence Examined
To complete ‘current systems’ Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and
record what controls and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who
is/are responsible for the management of this item of the code. Evidence checked should detail any documentary or verbal evidence shown to
support the systems.
Current systems: In the implementation phase. Some non-conformities were identified
Evidence examined – to support system description
(Documents examined & relevant comments. Include renewal/expiry date where appropriate):
Alignment between environmental risk prevention program programs, medical control of organizational health
program, an Occupational Health Certificate and distribution of personal protective equipment for workers IZ, steam
boiler worker; RM, Employee responsible for cleaning and conservation, and CG, Maintenance mechanic: EPI
distribution machine operators , Approval Certificate ( CA), number nr 5745, expiration 2019; nitrile glove CA
32070, validity 2018 and others. Assistance to NR-10. Inspection of SPDA, held in July 2015, by a qualified
professional CREA - RS191719 - evidenced visual inspection and measurement of electrical resistance of 4.3
Ohms ground. Technical Reports working conditions, version 2015. ergonomic Report, evidenced establishment
program and areas of fitness schedule. Already with ergonomic chairs were bought. The work activities do not
require staying in the same function. The responsible for ergonomic program is under the responsibility inhabited
Sizing of fall arrest pavilion flour PH CREA RD 136364 scaling resistance to 175 kgf with maximum load indication.
Non–compliance:
3.1. Description of non–compliance: Major Not available assessment unifilar chapel
compared to luminance parameters, sound pressure and exhaustion capacity at odds with
the provisions of ETI, item 3.4
NC against ETI
NC against Local Law
Local law and/or ETI requirement: ETI item 3.4 Inadequate provisions for safe
handling of hazardous chemicals or lapses in their application
Recommended Corrective Action: Conduct performance evaluation of assessment
unifilar chapel.
Follow-up: Evidenced conducting evaluation of sound pressure, exhaust flow and
illuminance. All assessments conducted in October 2015 on the responsibility of Joshua
Bussmann (Occupational Safety Technician, RS 1864); Alfredo Wesp (Eng. Safety, CREARS 184850) and Cleberton Caesar (CREA-RS Engineer 191719). Expected annual
assessment. Satisfactory and closed action. Status Closed
Objective evidence
observed:
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
20
Non–compliance:
3.2. Description of non–compliance: Major Emergency exit doors allowing easy opening not
from inside the establishment, for example door emergence of chemical laboratory and factory.
At odds with NR-23 (2011).
NC against ETI
NC against Local Law
Local law and/or ETI requirement: NR-23 (2011), item 23.5 Emergency exits can be equipped
with locking devices that allow easy opening inside the establishment.
Recommended corrective action: Correct outputs of the exit doors; create design
systematically to prevent recurrence.
Follow-up: Fixed exit door emergence chemical laboratory opening from inside establishment.
Planning to inspect all emergency doors in on time. Satisfactory/closed action. Status Closed
Objective
evidence
observed:
Documentation
analysis
Non–compliance:
3.3. Description of non–compliance: Major Without footer stairs. Factory stairs and
other units of the company do not have footers at odds with the NR-12 (2015),
NC against ETI
NC against Local Law
Local law and/or ETI requirement: NR-12(2015). Article 12.70 means of access ...,
must have protection system falls with as following. e) have baseboard at least 0.20 m
high and 0.70 m indent one intermediate height from the floor, located between the
baseboard and the upper crossbar.
Recommended corrective action: Correct stairs; create design systematically to
prevent recurrence.
Follow-up: Fixed footer in factory stairs in accordance with provisions of Brazilian law
NR12. Evidenced inspection plan to ensure projects of new stairs. Status Closed
Objective evidence
observed:
Non–compliance:
3.4. Description of non–compliance: Major Not available the Respiratory Protection
Program in accordance with the Instruction INSS 01 April 1994.
NC against ETI
NC against Local Law
Local law and/or ETI requirement: Regular instruction INSS 01 April 1994 Article 1 The
employer must adopt a set of measures in order to tailor the use of respiratory- protective
equipment. EPR when needed to complement measures of collective protection implemented,
or as long as they are being implemented, in order to ensure full protection to workers against
the risks in the workplace. Organization makes use of various chemicals, such as chloroform
and methanol, and no search respiratory possible contamination
Recommended Corrective Action: .Establish systematic program and its periodic review or
as needed
Follow-up: Evidenced respiratory protection program in accordance with the assumptions of
Brazilian legislation Instruction 01 INSS April 1994. Monitoring of exposure to Chloroform (test
report 89831/2015), measured value 1.61 ppm (limit of tolerance) 20 ppm; methanol exposure
(89826/2015 test report), no known exposure (156 ppm tolerance limit). Evidenced training in
the use of respiratory protection. Status Closed
Objective
evidence
observed:
Documentation
analysis
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
21
Non–compliance:
3.5. Description of non–compliance: Major Not available. Hearing Conservation
Program (PCA) in violation of NR-07 (2013)
NC against ETI
NC against Local Law
Local law and/or ETI requirement: NR07 2013 Annex I to Schedule II 1.1 Hearing
Conservation Program Establish guidelines/minimum standards for evaluation/monitoring
of workers' hearing through performing audiological tests of reference and sequential
Recommended Corrective Action: Establish systematic program and its periodic review
or as needed
Follow-up: Evidenced Hearing Conservation Program, developed by the Occupational
Safety Technician, Josuel Bussmann RS 1864, with an annual evaluation. Satisfactory
and closed corrective action. Status Closed
Objective evidence
observed:
Documentation
analysis
Non–compliance:
3.6. Description of non–compliance: Major Not available procedure for management of
confined spaces, at odds NR33. Company already has the training, in violation of NR33.
NC against ETI
NC against Local Law
Local law and/or ETI requirement: NR-33 (2006), item 33.2.1 It is up to the employer "to
implement safety and health management at work in confined spaces, for technical
preventive measures, administrative , personal and emergency and rescue in order to
permanently ensure environments with proper working conditions
Recommended Corrective Action: Establish systematic program and its periodic
review or as needed
Follow-up: Evidenced Program Confined Spaces Management, according to Brazilian
legislation NR-33, developed by the Occupational Safety Technician, Josue Bussmann,
RS nr 0001864, with an annual evaluation .Evidenced completion of the required training
Status Closed
Objective evidence
observed:
Non–compliance:
3.7. Description of non–compliance: Major Not available procedure for labour
management in height, at odds with the NR-35 (2012).
NC against ETI
NC against Local Law
Local law and/or ETI requirement: NR35 2012 item 35.2.1 Employer's responsibilities:
a) ensure the implementation of protective measures set forth in this Standard;
b) ensure conduct of Risk Analysis AR; where applicable, to issue the Work Permit PT;
c) develop operational procedures for the routine activities of working at height
Recommended Corrective Action: Establish systematic program and its periodic
review or as needed.
Follow-up: Evidenced work management program in height, according to Brazilian
legislation NR-35 and developed by the Occupational Safety Technician, Josue
Bussmann, RS nr 0,001,864, with an annual evaluation. Evidenced risk analysis of sites
with height greater than 2.0 m; evidenced training workers. Status Closed
Objective evidence
observed:
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
22
Non–compliance:
3.8. Description of non–compliance: Major Organization has no storage facilities,
disposal, containment or spill of hazardous chemicals for use in the Chemical Analysis
Laboratory
NC against ETI
NC against Local Law
Local law and/or ETI requirement: 3.4: Chemicals. Inadequate provisions for safe
handling of hazardous chemicals or lapses in their application
Recommended Corrective actions:
Evaluating reactivity of chemicals, create a routine for management infrastructure to
provide the correct storage
Follow-up: Organization developed area to storage , containment and to avoid spill
of hazardous chemicals for use in Chemical Analysis Laboratory. Status Closed
Objective evidence
observed:
)
Observation:
Description of observation: Use of electrical connection devices
Local law or requirement ETI: NR-10 (2004)
Recommended corrective action: It is recommended to review the practice of using
electrical connection devices, is reducing its use or test their validity amperage of the
electrical equipment used
Objective evidence
observed:
Site visit
Good Examples observed:
Description of Good Example (GE): NIL
Objective evidence
observed: NIL
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
23
4: Child Labour Shall Not Be Used
ETI
4.1 There shall be no new recruitment of child labour.
4.2 Companies shall develop or participate in and contribute to policies and programmes which provide for the transition of any
child found to be performing child labour to enable her or him to attend and remain in quality education until no longer a child.
4.3 Children and young persons under 18 shall not be employed at night or in hazardous conditions.
4.4 These policies and procedures shall conform to the provisions of the relevant ILO Standards.
Current Systems and Evidence Examined
To complete ‘current systems’ Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls
and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of
this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems.
Current systems:
Well Implemented without the need for corrective action.
The company does not have workers less than 18 years of age, except those in apprenticeship contract, according
to Brazilian legislation; these are in vocational schools, with wage guarantee in accordance with Brazilian law and
are not exposed to any risk. The current code of ethics prevents the hiring of workers under 18 years old.
Evidence examined – to support system description
(Documents examined & relevant comments. Include renewal/expiry date where appropriate):
All workers interviewed have more than 20 years.
Evidenced apprenticeship contract with several young, executed in accordance with Brazilian law.
Non–compliance:
1. Description of non–compliance: NIL
NC against ETI/Additional Elements
Local law and/or ETI requirement: NIL
Recommended corrective action: NIL
NC against Local Law
Objective evidence
observed: NIL
Observation:
Description of observation: NIL
Local law or ETI requirement: NIL
Comments: NIL
Objective evidence
observed: NIL
Good Examples observed:
Description of Good Example (GE): NIL
Objective evidence observed: NIL
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
24
5: Living Wages are Paid
ETI
5.1 Wages and benefits paid for a standard working week meet, at a minimum, national legal standards or industry benchmark
standards, whichever is higher. In any event wages should always be enough to meet basic needs and to provide some
discretionary income.
5.2 All workers shall be provided with written and understandable information about their employment conditions in respect to
wages before they enter employment and about the particulars of their wages for the pay period concerned each time that they
are paid.
5.3 Deductions from wages as a disciplinary measure shall not be permitted nor shall any deductions from wages not provided
for by national law be permitted without the expressed permission of the worker concerned. All disciplinary measures should be
recorded.
Current Systems and Evidence Examined
To complete ‘current systems’ Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls
and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of
this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems.
Current systems: Well Implemented without the need for corrective action.
It was shown that all the company's workers have wages above the Brazilian minimum wage and the regional
minimum wage. In relation to additional payments such as overtime, night work and of others, identified the correct
payment, in accordance with Brazilian law.
Regarding the discounts, all identified discounts, such as union dues, discount rates are in accordance with
Brazilian law. Workers receive salary receipt with the correct record of wages and wage rates discounts.
Evidence examined – to support system description
(Documents examined & relevant comments. Include renewal/expiry date where appropriate):
Evaluated 12 records of payments within 2 months of the year 2015 as well as vacation pay, and other additional.
Non–compliance:
1. Description of non–compliance: NIL
NC against ETI/Additional Elements
Local law and/or ETI requirement: NIL
Recommended corrective action: NIL
NC against Local Law
Objective evidence
observed: NIL
Observation:
Description of observation: NIL
Local law or ETI requirement: NIL
Comments: NIL
Objective evidence
observed: NIL
Good Examples observed:
Description of Good Example (GE): NIL
Objective evidence observed: NIL
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
25
Wages analysis:
A: Sample Size Checked (State number of worker
records checked and from which weeks/months – should
be current, peak and random/low. Please see SMETA
Best Practice Guidance and Measurement Criteria)
Tens workers, two payrolls . They evaluated the months of July
and January 2015; assessed payments for overtime, additional
end-of-year and holidays. All payments are registered and in
accordance with Brazilian legislation
B: Are there different legal minimum wage
grades? If Yes, please specify all.
Yes
No
If Yes, please give details:
None
C: If there are different legal minimum grades,
are all workers graded correctly?
Yes
No
N/A
If No, please give details:
None
D: What deductions are required by law e.g.
social insurance? Please state all types:
Social charges and income tax
E: Have all of these deductions been made?
Please list all deductions that have/have not
been made.
Yes
No
If Yes, Please list all deductions that have been
made: Social charges and income tax
If No, please give details on any deductions
which have not been made:
F: Industry norm for this region:
Union Agreement (Month payment)
(please include time period e.g. hour/week/month)
Wages table
Worker Type
Process Operator
(Lowest paid)
Process Operator
(Average paid)
Process Operator
(Highest paid)
Select from individual worker records one worker from, lowest, average and highest wages and populate the boxes. Ensure comparison is
made for same pay period and only uses full–time workers. See SMETA Best Practice Guidance and Measurement Criteria for completing this:
A: Pay period: (State month selected)
2015 January & July
2015 January & July
2015 January & July
B: Anonymous Employee Reference/Dept.
Cleaning and
conservation
services
Electrical
Maintenance
Mechanical
Maintenance
C: Employee Gender
Female
Male
Male
D: Contracted/Standard working hours:
Month
Month
Month
Month
Month
Month
One hour per day,
maximum
Two hours per day,
maximum
Two hours per day,
maximum
(excluding OT – please include time period)
E: Contracted /Standard work pay rate:
(excluding OT – please include time period)
F: Standard day overtime – hours:
(please include time period e.g. hour/week/month)
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
26
(please include time period e.g. hour/week/month)
Maximum two hours
per day
Maximum two hours
per day
Maximum two hours
per day
H: Rest day overtime – hours:
One day per week
One day per week
One day per week
One day per week
One day per week
One day per week
One day per week
One day per week
One day per week
---
----
---
(please include time period e.g. hour/week/month)
16,05 hours per
month, March
11,52 hours per
month, Jun
12,70 hours per
month, July
M: Incentives/Bonus/Allowances etc.:
--
---
---
R$ 1550
R$ 1847,00
R$ 2486
O: Social insurance and other deductions;
please list which and amount.
Social Tax,9 %
Social Tax, 9 %
Social Tax,11 %
P: Actual wage paid after deduction:
R$ 1.410,50
R$ 1.680,77
R$ 2.189,40
G: Standard day overtime – wage:
(please include time period e.g. hour/week/month)
I: Rest day overtime – wage:
(please include time period e.g. hour/week/month)
J: Statutory Holiday overtime – hours:
(please include time period e.g. hour/week/month)
K: Statutory holiday OT – wages:
(please include time period e.g. hour/week/month)
L: Total overtime hours:
(please include time period e.g. hour/week/month)
N: Gross wages:
(please include time period e.g. hour/week/month)
(please include time period e.g. hour/week/month)
Comments: (Please state here any specific reasons/circumstances that explain the lowest and highest gross wages)
Evidence of attendance Brazilian law associated with the payment of salaries.
Q: Is there a defined living wage:
This is not normally minimum legal wage. If answered
Yes please state amount and source of info:
Please see SMETA Best Practice Guidance and
Measurement Criteria.
Yes
No
Please specify amount/time period: R$ 1061,00 per month
R: Are workers paid in a timely manner in
line with local law?
Yes
No
S: Is there evidence that equal rates are
being paid for equal work:
Yes
No
Details:
T: How are workers paid:
Cash
Cheque
Bank Transfer
Other
If other explain:
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
27
6: Working Hours are not Excessive
ETI
6.1 Working hours must comply with national laws, collective agreements, and the provisions of 6.2 to 6.6 below, whichever
affords the greater protection for workers. Sub–clauses 6.2 to 6.6 are based on international labour standards.
6.2 Working hours, excluding overtime, shall be defined by contract, and shall not exceed 48 hours per week.
6.3 All overtime shall be voluntary. Overtime shall be used responsibly, taking into account all the following: the extent,
frequency and hours worked by individual workers and the workforce as a whole. It shall not be used to replace regular
employment. Overtime shall always be compensated at a premium rate, which is recommended to be not less than 125% of the
regular rate of pay.
6.4 The total hours worked in any 7 day period shall not exceed 60 hours, except where covered by clause 6.5 below.
6.5 Working hours may exceed 60 hours in any 7 day period only in exceptional circumstances where all of following are met:
– this is allowed by national law;
– this is allowed by a collective agreement freely negotiated with a workers’ organisation representing a significant
portion of the workforce;
– appropriate safeguards are taken to protect the workers’ health and safety; and
– The employer can demonstrate that exceptional circumstances apply such as unexpected production peaks,
accidents or emergencies.
6.6 Workers shall be provided with at least one day off in every 7 day period or, where allowed by national law, 2 days off in
every 14 day period.
Current Systems and Evidence Examined
To complete ‘current systems’ Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls
and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of
this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems.
Current systems: Well Implemented without the need for corrective action. Evidenced excess hours, not
exceeding the maximum of two hours, according to Brazilian law Consolidation of labour laws. There was not
above journeys of 48 hours per week. All overtime is carried out by free will of workers
Evidence examined to support system description
(Documents examined & relevant comments. Include renewal/expiry date where appropriate):
It was evaluated ten sheets points of workers.
Non–compliance:
1. Description of non–compliance: NIL
NC against ETI/Additional Elements
Local law and/or ETI requirement: NIL
Recommended corrective action: NIL
NC against Local Law
Objective evidence
observed: NIL
Observation:
Description of observation: Overtime
Local law or ETI requirement: CLT - Consolidation of Labor Laws
Comments: The organization could adopt routine to evaluate possible trends
overtaking the number of overtime provided for by law.
Objective evidence
observed:
Overtaking possibility nr of
permitted overtime
Good Examples observed:
Description of Good Example (GE): NIL
Objective evidence observed: NIL
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
28
Working hours analysis
Please include time period e.g. hour/week/month
Systems & Processes
A. What timekeeping systems are used:
time card etc.
Describe: time card
B: Sample Size Checked (State number of
Sampled points cards of the year 2015 to ten employees from different
functions
worker records checked, from which weeks/
months and type –current, peak and random/low:
See SMETA Best Practice Guidance and
Measurement Criteria)
C: Do ALL workers have contracts/
employment agreements?
Yes
No
If NO, state which type of workers do NOT have
contracts/employment agreements:
---
D: Are standard/contracted working
hours defined in all contracts/
employment agreements?
Yes
No
If NO, please state which type of workers do NOT have
standard hours defined in contracts/employment
agreements.
---
E: Are there any other types of
contracts/employment agreements
used?
Yes
No
If YES, Please complete as appropriate:
0 hrs
Part time
Variable hrs
Other
If “Other”, Please define:
---
Standard/Contracted Hours worked
F: Do standard/contracted standard
hours ever exceed the law or 48
hours per week?
G: What are the actual standard/
contracted hours worked in sample
(State per week/month)
H: Any local waivers/local law or
permissions which allow averaging/
annualised hours for this site?
Yes
No
If YES give details/comparison (local law/48 hrs week)
---
Highest hours:
16,05 hours per month, March
Lowest hours:
11,52 hours per month, June
Yes
No
If YES, Please give details
---
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
29
Overtime Hours
I: Actual overtime hours worked in
sample (State per day/week/month)
Highest OT hours:
16,05 hours per month, March
Lowest OT hours:
11,52 hours per month, June
J: Range of overtime hours over all
workers/or as large a sample as
possible. (State per week/month/ details)
1,5 to 16,05 in March
11,52 to 15,07 in June
0,6 to 10 in July
K: Approximate percentage of workers
on highest overtime hours
30 %
L: Is overtime voluntary?
Yes
No
Conflicting
Information
Please detail evidence e.g. Wording of contract/
employment agreement/handbook/worker
interviews/refusal arrangements:
worker interviews
Overtime Premiums
M: Is overtime paid at a premium?
Yes
No
Please give details of normal day overtime premium as a
% of standard wages:
0%
1–
115%
116 –
124%
125 –
149%
150 –
199%
200%+
Any other comments:--N: ETI Code requires a prevailing
standard to give greatest worker
protection.
If a site pays less than 125% OT
premium and this is allowed under
local law, are there other
considerations? Please complete the
boxes where relevant. Multi select is
possible.
No
Consolidated pay (May be standard wages above minimum legal wage, with
no/low overtime premium)
Collective Bargaining agreements
Other
Please explain any checked boxes in N above e.g. detail of consolidated
pay CBA or Other.
Brazilian Labor Law requires manufacturers to pay employees for overtime
in accordance with following rate structure:
a – In accordance with Brazilian Labor Law, Article 59, paragraph 1,
overtime hours should be paid 50% or more over regular wage per hour.
b – In accordance with Brazilian Labor Law, Article 457, Paragraph 1, not
only the stipulated value but also overtime wage, commissions,
percentages, gratifications, etc., are part of the salary.
c – In accordance with Brazilian Labor Law, Article 71, Paragraph 4, when
employer does not allow lunch time or rest time, he must pay the
corresponding time by 50% over normal working time wage.
d – In accordance with Court Statement no. 146, the overtime hours
performed on holidays should be paid in double.
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
30
Rest Days
O: Are workers provided with 1 day
off in every 7–day–period, or 2 in 14–
day–period (where the law allows)?
Yes
No
Maximum number of days worked without a day off (in sample):
Day off: 1 day off in every 7–day–period
Total Hours
P: Range of total hours:
(Quote highest and lowest please include
time period e.g. hour/week/month)
R: If more than 60 total hours per
week and this is legally allowed, are
there other considerations? Please
complete the boxes where relevant.
Multi select is possible.
Highest total hours
236 hours per month
Lowest total hours
220,6 hours per month
Overtime is voluntary
Onsite Collective bargaining allows 60+ hours/week
Safeguards are in place to protect worker’s health and safety
Site can demonstrate exceptional circumstances
Other reasons
Please explain any checked boxes in R above
There are no more than 60 total hours per week
Comments: (please state here any specific reasons/circumstances that explain the highest working hours)
NONE
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
31
7: No Discrimination is Practiced
ETI
7.1 There is no discrimination in hiring, compensation, access to training, promotion, termination or retirement based on race,
caste, national origin, religion, age, disability, gender, marital status, sexual orientation, union membership or political affiliation.
Current Systems and Evidence Examined
To complete ‘current systems’ Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls
and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of
this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems.
Current systems: Well implemented; without corrective action. It was shown no hint of any colour discrimination,
sex, creed, religion and others. It was shown that the current Code of Ethics prohibits any kind of discrimination.
Evidence examined - to support system description
(Documents examined & comments relevant Include renewal / expiry date where Appropriate.):
They interviewed ten employees, without all state that there is no type of practice regarding discrimination..
Non–compliance:
1. Description of non–compliance: NIL
NC against ETI/Additional Elements
Local law and/or ETI requirement: NIL
Recommended corrective action: NIL
NC against Local Law
Objective evidence
observed: NIL
Observation:
Description of observation: NIL
Local law or ETI requirement: NIL
Comments: NIL
Objective evidence
observed: NIL
Good Examples observed:
Description of Good Example (GE): NIL
Objective evidence observed: NIL
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
32
8: Regular Employment Is Provided
ETI
8.1 To every extent possible work performed must be on the basis of recognised employment relationship established through
national law and practice.
8.2 Obligations to employees under labour or social security laws and regulations arising from the regular employment
relationship shall not be avoided through the use of labour–only contracting, sub–contracting, or home–working arrangements,
or through apprenticeship schemes where there is no real intent to impart skills or provide regular employment, nor shall any
such obligations be avoided through the excessive use of fixed–term contracts of employment.
Current Systems and Evidence Examined
To complete ‘current systems’ Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls
and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of
this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems.
Current systems: It was shown that the work is carried out on the basis of recognized employment relationship
established through legislation and practices. It was shown for all workers interviewed the presence of valid work
contract and according to the Brazilian labor laws. It was not evidenced any subcontracting, work at home, work, or
other work scheme in illegal Brazilian law
Evidence examined – to support system description
(Documents examined & relevant comments. Include renewal/expiry date where appropriate):
Assessed employment contracts than ten employees and all according to Brazilian law.
Non–compliance:
1. Description of non–compliance: NIL
NC against ETI/Additional Elements
Local law and/or ETI requirement: NIL
Recommended corrective action: NIL
NC against Local Law
Objective evidence
observed: NIL
Observation:
Description of observation: NIL
Local law or ETI requirement: NIL
Comments: NIL
Objective evidence
observed: NIL
Good Examples observed:
Description of Good Example (GE): NIL
Objective evidence observed: NIL
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
33
8A: Sub–Contracting and Homeworking
8A.1. There should be no sub–contracting unless previously agreed with the main client.
8A.2. Systems and processes should be in place to manage sub–contracting, homeworking and external processing.
Note to auditor on homeworking:
Report on whether it is direct or via agents. How many workers, relationship with site and what control systems are in place.
Current Systems and Evidence Examined
To complete ‘current systems’ Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls
and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of
this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems.
Current systems: The organization has not outsourced production process. All steps related to the case processing animal waste - are held internally.
Evidence examined – to support system description
(Documents examined & relevant comments. Include renewal/expiry date where appropriate): None
If any processes are sub–contracted – please populate below boxes None
Non–compliance:
1. Description of non–compliance: NIL
NC against ETI/Additional Elements
Local law and/or ETI requirement: NIL
Recommended corrective action: NIL
NC against Local Law
Objective evidence
observed: NIL
Observation:
Description of observation: NIL
Local law or ETI requirement: NIL
Comments: NIL
Objective evidence
observed: NIL
Good Examples observed:
Description of Good Example (GE): NIL
Objective evidence observed: NIL
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
34
Summary of sub–contracting – if applicable
A: If sub–contractors are used, is there
evidence this has been agreed with the main
client?
Yes
No
If Yes, summarise details:
B: Number of sub–contractors/agents used
None
C: Is there a site policy on sub–contracting?
Yes
No : The organization has not outsourced production process
If Yes, summarise details:
D: What checks are in place to ensure no
child labour is being used and work is safe?
None
E: What processes are sub–contracted?
None
Summary of homeworking – if applicable
F: If homeworking is being used, is
there evidence this has been agreed
with the main client?
Yes
No - The organization has not outsourced production process
If Yes, summarise details:
G: Number of homeworkers
Male: None
H: Are homeworkers employed direct
or through agents?
I: If through agents, number of
agents
Female: None
Total: None
Directly
Through Agents
---
J: Is there a site policy on
homeworking?
Yes
No - There are no home working
K: How does site ensure worker
hours and pay meet local laws for
homeworkers?
---
L: What processes are carried out by
homeworkers?
---
M: Are written agreements in place
for homeworkers that include regular
employment?
Yes
No
None
N: Are full records available at the
site?
Yes
No
None
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
35
9: No Harsh or Inhumane Treatment is Allowed
ETI
9.1 Physical abuse or discipline, the threat of physical abuse, sexual or other harassment and verbal abuse or other forms of
intimidation shall be prohibited.
Current Systems and Evidence Examined
To complete ‘current systems’ Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls
and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is /are responsible for the management of
this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems.
Current systems: Well implemented without non-compliance.
There were no records or complaints from workers during the interviews about the presence of physical abuse or
discipline, the threat of physical abuse, sexual harassment or other and verbal abuse or other forms of intimidation.
Evidence examined – to support system description
(Documents examined & relevant comments. Include renewal/expiry date where appropriate):
Interviews with ten workers
Non–compliance:
1. Description of non–compliance: NIL
NC against ETI/Additional Elements
Local law and/or ETI requirement: NIL
Recommended corrective action: NIL
NC against Local Law
Objective evidence
observed: NIL
Observation:
Description of observation: NIL
Local law or ETI requirement: NIL
Comments: NIL
Objective evidence
observed: NIL
Good Examples observed:
Description of Good Example (GE): NIL
Objective evidence observed: NIL
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
36
10. Other Issue areas: 10 A: Entitlement to Work and Immigration
Additional Elements
10A1 Only workers with a legal right to work shall be employed or used by the supplier.
10A2 All workers, including employment agency staff, must be validated by the supplier for their legal right to work by reviewing
original documentation.
10A3 Employment agencies must only supply workers registered with them.
10A4 The supplier shall implement processes to enable adequate control over agencies with regards the above points and
related legislation.
Current Systems and Evidence Examined
To complete ‘current systems’ Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls
and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of
this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems.
Current systems: Legal contract: all interviewed workers have regular contract, according to the provisions of
Brazilian law. Workers who act as vigilantes have regular and hired contract employment agency with assessment
provided the contractor with respect to regular work. The company exercises control over employment agencies
hand labour providers regarding the correct payment of wages, payment of benefits such as the tenth-third parties,
holidays, overtime and others; ditto for assessing the actual discounts such as income taxes and others. Currently
the company has no foreign workers, but if they are hired, will be hired with the same rights of Brazilian workers.
Evidence examined – to support system description
(Documents examined & relevant comments. Include renewal/expiry date where appropriate):
Interview with ten workers
Non–compliance:
1. Description of non–compliance: NIL
NC against ETI/Additional Elements
Local law and/or ETI requirement: NIL
Recommended corrective action: NIL
NC against Local Law
Objective evidence
observed: NIL
Observation:
Description of observation: NIL
Local law or ETI requirement: NIL
Comments: NIL
Objective evidence
observed: NIL
Good Examples observed:
Description of Good Example (GE): NIL
Objective evidence observed: NIL
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
37
10. Other issue areas 10B4: Environment 4–Pillar
To be completed for a 4–Pillar SMETA Audit and remove the previous page which is 10B2 environment 2 pillar
B.4. Compliance Requirements
10B4.1 Suppliers as a minimum must meet the requirements of local and national laws related to environmental standards.
10B4.2.Where it is a legal requirement, suppliers must be able to demonstrate that they have the relevant valid permits
including for use and disposal of resources e.g. water, waste etc.
10B4.3. The supplier shall be aware of their end client’s environmental standards/code requirements and have a system in
place to monitor their performance against these.
B4. Guidance for Observations
10B4.4. Suppliers should have completed the appropriate section of the SAQ and made it available to the auditor.
10B4.5. Suppliers should have an environmental policy, covering their environmental impact, which is communicated to all
appropriate parties, including its own suppliers.
10B4.6. Suppliers shall be aware of the significant environmental impact of their site and its processes.
10B4.7. The site should measure its impacts, including continuous recording and regular reviews of use and discharge of
natural resources e.g. energy use, water use (see 4–pillar audit report and audit checks for details).
10B4.8. Suppliers shall seek to make continuous improvements in their environmental performance.
10B4.9. Suppliers shall have available for review any environmental certifications or any environmental management systems
documentation
10B4.10. Suppliers should have a nominated individual responsible for co–ordinating the site’s efforts to improve environmental
performance.
10B.4.11. Has the site recently been subject to (or pending) any fines/prosecutions for noncompliance to environmental
regulations.
Note for auditors and readers. This environment section is intended to take not more than 0.25 auditor days. It is an assessment only
and the main requirement is to establish whether a site is meeting applicable environmental laws and/or has any certifications or
environmental management systems in place. Following this assessment the client/supplier may decide a full environmental audit is
required (see also best practice guidance/environment and guidance for auditor)
Current Systems and Evidence Examined
To complete ‘current systems’ Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls
and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is/are responsible for the management of
this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems.
Current systems: Well implemented. Software for management of waste and liquid effluents and air emissions.
Evidence examined – to support system description
(Documents examined & relevant comments. Include renewal/expiry date where appropriate):
Monitoring of environmental performance in waste management, wastewater and atmospheric emissions
Non–compliance:
10B4.1. Description of non–compliance: Major: Environmental licensing. External noise
assessment. Not available evidence of external noise assessment in accordance Environmental
permit FEPAM LO 04931/2015-DL and Brazilian law CONAMA 01/90 (NBR 10151:2000)
NC against ETI
NC against Local Law
Local law and/or ETI requirement: CONAMA 01/90 NBR 10151:2000 Items: I noise emissions
as a result of any industrial, commercial, social, including those of political propaganda, obey, in
the interests health, public peace, the standards, criteria and guidelines set forth in this Resolution
II are harmful to health and public peace, for the fi ns of the previous item, the with noise levels
above those considered acceptable by the NBR-10.15179 - Rating Noise in Inhabited Areas to
ensure the comfort of the community, the Association Brazilian Technical Standards - ABNT.
Recommended Corrective Actions: Perform evaluation of external noise; to create systematic
periodic evaluation.
Follow-up: Available report of external noise, made by Engineer Geraldo Ribar, CREA-RS82645.
Status Closed
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
Objective
evidence
observed:
Documental
Analysis :
Environmental
permit FEPAM
LO
04931/2015DL External
noise
assessment.
38
Observation:
Description of observation: NIL
Local law or ETI requirement: NIL
Comments: NIL
Objective evidence
observed: NIL
Good Examples observed:
Description of Good Example (GE): NIL
Objective evidence observed: NIL
Environmental Analysis
(Site declaration only – this has not been verified by auditor. Please state units in all cases below.)
A; Responsible for Environmental issues
Freddy Kaufmann Environmental Engineer
B: Does the site have a recognised
environmental system certification such as
ISO 14000 or equivalent? Please detail.
Yes
No
Details:
C: Does the site have an Environmental
policy?
Yes : The organization has drafted environmental policy, with
the same being implemented
No
(For guidance, please see Measurement criteria )
Does the site have a Biodiversity policy?
(For guidance, please see Measurement criteria )
Yes
No
E: Is there any other sustainability systems
present such as Chain of Custody, Forest
Stewardship Council (FSC), Marine
Stewardship Council (MSC) etc.? Please
detail. (For guidance, see Measurement criteria )
Yes
No
Details:
F: Have all legally required permits been
shown?
Please detail.
Yes
No
Details:
Environmental permit FEPAM LO 04931/2015-DL issued.
Fire permit PPCI 1471/1 average risk valid until June 2016
Fuel station permit By ANP (Brazilian Oil Agency, valid until
November 2015)
G: Is there a documentation process to record
hazardous chemicals used in the
manufacturing process?
Yes
No
N/A
Details:
H: Is there a system for managing client’s
requirements and legislation in the destination
countries regarding environmental and
chemical issues?
Yes
No
Details:
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
39
Usage/Discharge analysis
Criteria
Current year: Please state period:
july, 2015____________
Electricity Usage: Kw/hrs
152.205
Renewable Energy Usage: Kw/hrs
-
Gas Usage: Kw/hrs
-
Has site completed any carbon
Footprint Analysis?
Previous Year: Please state period:
(1)
Not available
Yes
No
Yes
No
If Yes, please state result
Water Sources: Please list all sources
•
e.g. lake, river, and local water authority.
Water Volume Used: (m³)
Groundwater
77 (average)
Water Discharged: Please list all
•
•
receiving waters/recipients.
Factory cleaning
Boiler purges
Water Volume Discharged: (m³)
35 (average)
Water Volume Recycled: (m³)
-
Total waste Produced:
Paper, Paperboard, Plastic, iron,
non-recyclable, hazardous waste
(please state units)
(please state units)
Fluorescent lamps, waste
contaminated with oil
Waste to Recycling:
Paper, paperboard, plastic, iron
Total hazardous waste Produced:
•
•
•
(please state units)
Waste to Landfill:
Non-recyclable waste
(please state units)
Total Product Produced:
(please state units)
Feather Meal – 331.680 kg
Poultry Meal – 648.810 kg
Poultry Oil – 362.180 kg
(1) The results of the previous year were not available
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
40
10C: Business Ethics – 4-Pillar Audit
To be completed for a 4–Pillar SMETA Audit
10C. Guidance for “Observations”
10C.1. Suppliers should have completed the appropriate section of the SAQ and have made it available to the auditor.
10C.2. The supplier should have received and acknowledged– preferably in writing – the Business Ethics policy of the
auditor/audit company.
10C.3. Suppliers shall seek to conduct their business ethically without bribery/corruption/any type fraudulent Business Practice.
10C.4. Suppliers shall be aware of any applicable laws, their end client’s Business Ethics standards/code requirements and
have a system in place to monitor their performance against these.
10C.5. Supplier should have a Business Ethics policy concerning bribery, corruption, or unethical Business Practice. This
should be clearly communicated to all relevant parties.
10C.6. Suppliers should have a designated person responsible for implementing standards concerning Business Ethics
10C.7. Suppliers should have a transparent system in place for confidentially reporting, and dealing with unethical Business
Ethics without fear of reprisals towards the reporter
10C.8. Suppliers should ensure that the staff whose job roles carry a higher level of risk in the area of ethical Business Practice
e.g. sales, purchasing, logistics are trained on what action to take in the event of an issue arising in their area.
Note for auditors and readers. This Business Ethics section is intended to take not more than 0.25 auditor days. It is an assessment not
an audit and the main requirement is to gather information on the relevant Business Ethics issues in a supply chain. All findings will be
recorded as observations not Non– Compliances and the data collected will allow the membership to define appropriate standards over
time as part of a continuous review process.
Current Systems and Evidence Examined
To complete ‘current systems’ Auditors examine policies and written procedures in conjunction with relevant managers, to understand, and record what controls
and processes are currently in place e.g. record what policies are in place, what relevant procedures are carried out, who is /are responsible for the management of
this item of the code. Evidence checked should detail any documentary or verbal evidence shown to support the systems.
Current systems: Well implemented. Organization developed code of ethics, which provides all of standard items,
focusing especially on prohibition of any kind of prejudice, corruption practices, irregular and other work. The same
is implemented with workers during the beginning of work, with the responsibility of this task performed by the
Human Resources department.
Evidence examined – to support system description
(Documents examined & relevant comments. Include renewal/expiry date where appropriate):
Code of ethics, version 2015. Interviews with workers
Non–compliance:
1. Description of non–compliance: NIL
NC against ETI/Additional Elements
Local law and/or ETI requirement: NIL
Recommended corrective action: NIL
NC against Local Law
Objective evidence
observed: NIL
Observation:
Description of observation: Code of Ethics
Local law or ETI / demand additional elements: ETI Code
Comments: It is recommended to improve the implementation of the code of ethics in all
the organization's supply chain. Currently, the major suppliers of the organization, already
has its own code of ethics, it is important to extend efforts to achieve all the other suppliers.
Objective evidence
observed:
Ethics Code
implementation
supply chain
Good Examples observed:
Description of Good Example (GE): NIL
Objective evidence observed: NIL
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
41
Worker Interview Summary
Worker Interview Summary
A: Were workers aware of the audit?
Yes
No
B: Were workers aware of the code?
Yes
No
C: Number of group interviews: (Please specify number
1 group of 4
and size of groups. Please see SMETA Best Practice
Guidance and Measurement Criteria)
D: Number of individual interviews: (Please see SMETA
Male: 4
Female: 2
Male: 8
Female: 2
Best Practice Guidance and Measurement Criteria)
E: Total number of interviewed workers
(Please see SMETA Best Practice Guidance and
Measurement Criteria)
F: Interviews were done in private and the
confidentiality of the interview process was
communicated to the workers?
Yes
No
G: In general, what was the attitude of the workers
towards their workplace?
Favourable
Non–favourable
Indifferent
H: What was the most common worker complaint?
There are no complaint
I: What did the workers like the most about working at
this site?
Payment of wages on time without any delay; favourable
and healthy working environment.
J: Any additional comment(s) regarding interviews:
None
K: Attitude of workers to hours worked:
Normal Attitude: workers indicated that the performance
of overtime was accepted with the same, without any
pressure. It has also indicated that all the hours were paid
in accordance with Brazilian law and the incidence of
associated benefits and taxes, which was evidenced by
the auditor during the evaluation of payroll thereof.
Agency Workers
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
42
Agency Workers (if applicable)
(workers sourced from a local agent who are not directly paid by the site)
A: Number of agencies used (average):
And names if available: One; Supplier of hand Sell
Janitorial Services Ordinance Ltda. Company responsible
for providing armed security guard for the balance of the
facility. Single event worker agent and this is not part of
the main process of the company.
B: Were agency workers’ age/pay/hours included
within scope of this audit
Yes
No
C: Were sufficient documents for agency workers
available for review?
Yes
No
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
43
Other findings
Other Findings Outside the Scope of the Code
None
Community Benefits
(Please list below any specific community benefits that the site management stated that they were involved in, for example, HIV
programme, education, sports facilities)
None
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
44
Appendix 1
Comparison between ETI code and Customer's Supplier's Code. Any areas where a site complies with the Customer's Supplier
Code, but not with the ETI code are discussed at the audit close out meeting and recorded on the CAPR. Note to supplier "for
this customer it may not be necessary to complete corrective actions where NC's DO NOT meet the ETI code, but DO meet
your customer's code. If the audit is shared with other customers who work to the ETI code or an equivalent international
standard, corrective actions will be necessary."
NOTE: The provisions of the ETI base Code constitute minimum and not maximum standards,
and this code should not be used to prevent companies from exceeding these standards.
Companies applying the ETI Base Code are expected to comply with national and other
applicable law and, where the provisions of law and the ETI Base Code address the same subject,
to apply that provision which affords the greater protection.
Instruction to Audit
Company: fill in relevant
clauses from the Customer
Supplier Code - where
applicable.
ETI Code
Customer's Supplier
Code equivalent
ETI 1. Employment is freely chosen
1.1. There is no forced, bonded or involuntary prison labour.
1.2. Workers are not required to lodge "deposits" or their identity papers with their employer and
are free to leave their employer after reasonable notice.
Yes
(2)
ETI 2. Freedom of association and the right to collective bargaining are respected
2.1. Workers, without distinction, have the right to join or form trade unions of their own choosing
and to bargain collectively.
2.2. The employer adopts an open attitude towards the activities of trade unions and their
organisational activities.
2.3. Workers representatives are not discriminated against and have access to carry out their
representative functions in the workplace.
2.4. Where the right to freedom of association and collective bargaining is restricted under law, the
employer facilitates, and does not hinder, the development of parallel means for independent and
free association and bargaining.
Yes
(2)
Yes
(2)
ETI 3. Working conditions are safe and hygienic
3.1. A safe and hygienic working environment shall be provided, bearing in mind the prevailing
knowledge of the industry and of any specific hazards. Adequate steps shall be taken to prevent
accidents and injury to health arising out of, associated with, or occurring in the course of work, by
minimising, so far as is reasonably practicable, the causes of hazards inherent in the working
environment.
3.2. Workers shall receive regular and recorded health and safety training; such training shall be
repeated for new or reassigned workers.
3.3. Access to clean toilet facilities and to potable water, and, if appropriate, sanitary facilities for
food storage shall be provided.
3.4. Accommodation, where provided, shall be clean, safe, and meet the basic needs of the
workers.
3.5. The company observing the code shall assign responsibility for health and safety to a senior
management representative.
ETI 4. Child labour shall not be used
4.1. There shall be no new recruitment of child labour.
4.2. Companies shall develop or participate in and contribute to policies and programmes which
provide for the transition of any child found to be performing child labour to enable her or him to
attend and remain in quality education until no longer a child; “child” and “child labour” being
defined in the appendices.
Yes (2)
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
45
4.3. Children and young persons under 18 shall not be employed at night or in hazardous
conditions.
4.4. These policies and procedures shall conform to the provisions of the relevant ILO standards.
ETI 5. Living wages are paid
5.1. Wages and benefits paid for a standard working week meet, at a minimum, national legal
standards or industry benchmark standards, whichever is higher. In any event wages should
always be enough to meet basic needs and to provide some discretionary income.
5.2. All workers shall be provided with written and understandable Information about their
employment conditions in respect to wages before they enter employment and about the
particulars of their wages for the pay period concerned each time that they are paid.
5.3. Deductions from wages as a disciplinary measure shall not be permitted nor shall any
deductions from wages not provided for by national law be permitted without the expressed
permission of the worker concerned. All disciplinary measures should be recorded.
Yes (2)
ETI 6. Working Hours are not excessive
6.1 Working hours must comply with national laws, collective agreements, and the provisions of
6.2 to 6.6 below, whichever affords the greater protection for workers. Sub–clauses 6.2 to 6.6 are
based on international labour standards.
6.2 Working hours, excluding overtime, shall be defined by contract, and shall not exceed 48
hours per week.
6.3 All overtime shall be voluntary. Overtime shall be used responsibly, taking into account all the
following: the extent, frequency and hours worked by individual workers and the workforce as a
whole. It shall not be used to replace regular employment. Overtime shall always be compensated
at a premium rate, which is recommended to be not less than 125% of the regular rate of pay.
6.4 The total hours worked in any 7 day period shall not exceed 60 hours, except where covered
by clause 6.5 below.
6.5 Working hours may exceed 60 hours in any 7 day period only in exceptional circumstances
where all of the following are met:
– this is allowed by national law;
– this is allowed by a collective agreement freely negotiated with a workers’ organisation
representing a significant portion of the workforce;
– appropriate safeguards are taken to protect the workers’ health and safety; and
– The employer can demonstrate that exceptional circumstances apply such as unexpected
production peaks, accidents or emergencies.
6.6 Workers shall be provided with at least one day off in every 7 day period or, where allowed by
national law, 2 days off in every 14 day period.
Yes (2)
ETI 7. No discrimination is practised
There is no discrimination in hiring, compensation, access to training, promotion, termination or
retirement based on race, caste, national origin, religion, age, disability, gender, marital status,
sexual orientation, union membership or political affiliation.
Yes (2)
ETI 8. Regular employment is provided
8.1. To every extent possible work performed must be on the basis of recognised employment
relationship established through national law and practice.
8.2. Obligations to employees under labour or social security laws and regulations arising from the
regular employment relationship shall not be avoided through the use of labour-only contracting,
sub-contracting, or home-working arrangements, or through apprenticeship schemes where there
is no real intent to impart skills or provide regular employment, nor shall any such obligations be
avoided through the excessive use of fixed-term contracts of employment.
Yes (2)
ETI 9. No harsh or inhumane treatment is allowed
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
46
Physical abuse or discipline, the threat of physical abuse, sexual or other harassment and verbal
abuse or other forms of intimidation shall be prohibited.
Yes (2)
(2) The Code of Ethics was drafted in a single text, with no subdivisions such as items and chapters. So there is no relationship
of shapes of the items under this point with the text in question.
SMETA Extra Sections for 4 Pillar Audit:
Environment Section
10B.4. Compliance Requirements
10B4.1 Suppliers as a minimum should meet the requirements of local and national laws related to
environmental standards.
10B4.2.Where it is a legal requirement, suppliers must be able to demonstrate that they have the
relevant valid permits including for use and disposal of resources e.g. water, waste etc.
10.B4.3. The supplier shall be aware of their end client’s environmental standards/code requirements
and have a system in place to monitor their performance against these.
10B4. Guidance for Observations
10B4.4. Suppliers should have completed the appropriate section of the SAQ and made it available to
the auditor.
10B4.5. Suppliers should have an environmental policy, covering their environmental impact, which is
communicated to all appropriate parties, including its own suppliers.
10B4.6. Suppliers shall be aware of the significant environmental impact of their site and its
processes.
10B4.7. The site should measure its impacts, including continuous recording and regular reviews of
use and discharge of natural resources e.g. energy use, water use (see 4-pillar audit report and audit
checks for details).
10B4.8. Suppliers shall seek to make continuous improvements in their environmental performance.
10B4.9. Suppliers shall have available for review any environmental certifications or any
environmental management systems documentation
10B4.10. Suppliers should have a nominated individual responsible for co-ordinating the site’s efforts
to improve environmental performance.
10B.4.11. Has the site recently been subject to (or pending) any fines/prosecutions for noncompliance
to environmental regulations.
Yes
Business Practices Section
10C. Guidance for Observations
10C.1. Suppliers should have completed the appropriate section of the SAQ and have made it
available to the auditor.
10C.2. The supplier should have received and acknowledged- preferably in writing – the Business
Practices policy of the auditor/audit company.
10C.3. Suppliers shall seek to conduct their business ethically without bribery, corruption, or any type
of fraudulent Business Practice.
10C.4. Suppliers shall be aware of any applicable laws, their end client’s Business Practices
standards/code requirements and have a system in place to monitor their performance against these.
10C.5. Supplier should have a Business Practices policy concerning bribery, corruption, or unethical
Business Practice. This should be clearly communicated to all relevant parties.
10C.6. Suppliers should have a designated person responsible for implementing standards
concerning Business Practices
10C.7. Suppliers should have a transparent system in place for confidentially reporting, and dealing
with unethical Business Practices without fear of reprisals towards the reporter
10C.8. Suppliers should ensure that the staff whose job roles carry a higher level of risk in the area of
ethical Business Practice e.g. sales, purchasing, logistics are trained on what action to take in the
event of an issue arising in their area.
Yes
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
47
Photo Form
General View
Factory View
Final Product Storage
Steam boiler
Steam boiler wood (fuel)
Risk Management
Emergency meeting point
Emergency door.
Exhaust system for chemicals.
Non Conformity nr 3.1
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
48
Work platform height.
Non Conformity nr 3.3
Protection equipment danger zone
Device for first aid
Protection
zone
equipment
Waste Management
danger
Electric
uniform
risk
-
personal
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
protective
49
Your feedback on your experience of the SMETA audit you have observed is extremely valuable.
It will help to make improvements to future versions.
You can leave feedback by following the appropriate link to our questionnaire:
Click here for A & AB members:
http://www.surveymonkey.com/s.aspx?sm=riPsbE0PQ52ehCo3lnq5Iw_3d_3d
Click here for B members:
http://www.surveymonkey.com/s.aspx?sm=d3vYsCe48fre69DRgIY_2brg_3d_3d
Audit Company: SGS SSC Report reference: 29673 Date: 11August2015 11December2015
50