2014-7-01-02 SAI SA8000 audit report

Audit Report2nd party Audit forTai‟an Taishan Asia Food Co., LTD.WI-664162Audited Address: No.3 Processing Plant of Tai'an, Taishan Asia Food Co., Wanguan Road East End, Taishan Disrtict, Taian City, SHD, 271000, China,.Date of audit: July.01-02, 2014COMMERCIAL- IN – CONFIDENCEBACKGROUND INFORMATIONSAI Global conducted an audit of Tai‟an Taishan Asia Food Co., LTD. on July. 01. 2014 toJuly.02.2014.The purpose of this audit report is to summarise the degree of compliance with relevant criteria, as defined on the cover page of this report, based on the evidence obtained during the audit of your organization. This audit report considers your organization‟s quality policy, objectives, and continual improvement processes. Comments may include how suitable the objectives selected by your organization appear to be in regard to maintaining customer satisfaction levels and providing other benefits with respect to policy and other external and internal needs. We may also comment regarding the measurable progress you have made in reaching these targets for improvement.SAI Global audits are carried out within the requirements of SAI Global procedures that also reflect the requirements and guidance provided in the international standards relating to audit practice such as ISO/IEC 17021, ISO 19011 and other normative criteria. SAI Global Auditors are assigned to audits according to industry, standard or technical competencies appropriate to the organization being audited. Details of such experience and competency are maintained in our records.In addition to the information contained in this audit report, SAI Global maintains files for each client. These files contain details of organization size and personnel as well as evidence collected during preliminary and subsequent audit activities (Documentation Review and Scope) relevant to the application for initial and continuing certification of your organization.Please take care to advise us of any change that may affect the application/certification or may assist us to keep your contact information up to date, as required by SAI Global Terms and Conditions.This report has been prepared by SAI Global Limited (SAI Global) in respect of a Client's application for assessment by SAI Global. The purpose of the report is to comment upon evidence of the Client's compliance with the standards or other criteria specified. The content of this report applies only to matters, which were evident to SAI Global at the time of the audit within the audit scope. SAI Global does not warrant or otherwise comment upon the suitability of the contents of the report or the certificate for any particular purpose or use. SAI Global accepts no liability whatsoever for consequences to, or actions taken by, third parties as a result of or in reliance upon information contained in this report or certificate.Please note that this report is subject to independent review and approval. Should changes to the outcomes of this report be necessary as a result of the review, a revised report will be issued and will supersede this report.Standard: SA8000Applicable codes: NILScope of Certification: The assessment covers the Social Accountability management system for international express.Permissible exclusions: NATeam Leader: George Liu Auditors: N/A Sampled Site Information: 1 sitesHQ Head OfficeSite Address No.3 Processing Plant of Tai'an, Taishan Asia Food Co., Wanguan Road East End, Taishan Disrtict, Taian City, SHD, 271000, China,.Number of Staff: 137 employeesNumber of Shifts: 1Total audit duration: 2 Man-Day, July.01-02.2014Definitions and action required with respect to audit findingsNon-conformance:Based on objective evidence, the absence of, or a significant failure to implement and/or maintain conformance to requirements of the applicable standard. Such issues may raise significant doubt as to the capability of the management system to achieve its intended outputs.NOTE: The “applicable Standard” is the Standar d which SAI Global are issuing certification against, and may be a Product Standard, a management system Standard, a food safety Standard or another set of documented criteria.Action required: This category of findings requires SAI Global to issue a forma l NCR; to receive and approve client‟s proposed correction and corrective action plans; and formally verify the effective implementation of planned activities. Correction and corrective action plan should be submitted to SAI Global prior to commencement of follow-up activities as required. Follow-up action by SAI Global must …close out‟ the NCR or reduce it to a lesser category within 60 days for recertification audits.If significant risk issues (e.g. safety, environmental, food safety, product legality/quality, etc.) are detected during an audit these shall be reported immediately to the Client and more immediate or instant correction shall be requested. If this is not agreed and cannot be resolved to the satisfaction of SAI Global, immediate suspension shall be recommended.In the case of an already certified client, failure to close out NCR within the time limits means that suspension proceedings may be instituted by SAI Global.Follow-up activities incur additional charges..Area of Concern: Area of the system for which the client is required to investigate potential nonconformity.Action required: SAI Global may require client to formulate preventive action plan for approval prior to next planned audit / certification decision or alternatively may fol low up client‟s preventive action at the next planned audit. Lack of client attention to such issues implies that a preventive action system is not working effectively, and could result in an NCR being raised at a later date.Opportunity for Improvement:A documented statement, which may identify areas for improvement however shall not make specific recommendation(s).Action required: Client may develop and implement solutions in order to add value to operations and management systems. SAI Global is not required to follow-up on this category of audit finding.Executive OverviewThe purpose of this audit was to determine the capability and effectiveness of your organization‟s management system in: ensuring continual compliance with customer, statutory and regulatory requirements; meeting its specified objectives; and conformity of the management system to stated criteria.The audit is a 2nd party assessment audit for the applicant. the audit is a program for its Social Accountability 8000 Management System.During this 2nd party assessment audit, 6 informal employment staff was selected for individual interviews, Interview procedures take full account of the principles of confidentiality and protection of employees.The Social Accountability 8000 program was implemented as a centralized control by Human resource department in Head Office. Management review was conducted annually, while theSA8000 standard upgrade, the documents of SA8000 had been updated according to the requirements of the current standard. Internal audit was conducted by factory, and monitored by HR, and then reviewed by CSR team in head office, corrective actions were taken within timeline. Take into consideration to deliver continual training to employees on the change of program. However, insufficient communication and information change brings some weakness as health & safety issues, and the findings have been issued as AOCs.At the same time, audit group also proposed points of Opportunity for Improvement (OFI), for reference of verification in future improvement work.RecommendationThe recommendation from this audit is that only for your customer to be reference.Audit recommendations are always subject to ratification by SAI Global certification authority.This report was prepared by:George LiuSAI Team LeaderGeneral evaluation of each requirement of SA8000 standard:1、C hild LabourNot use child labour and no young worker were found during onsite audits.2、Forced and Compulsory LabourNo forced and compulsory labour was found during onsite audit; workers can leave the workplace with freedom premises after completing the standard workday.3、H ealth & SafetyNon conformity of fire safety issues were found on sites, fire safety and electric safety issues were found in on sites, chemical safety and special equipment management issues werefound in on site.4、Freedom of Association & Right To Collective BargainingWorker representative was elected freely by recognized labor union, and had union members in factory.4、D iscriminationWorkers can compete to any position within their organization upon their competence.During onsite audits, no discrimination to female workers and migrant workers were found.But the national minority employee wasn‟t marked in the Non-discrimination policy.6 Disciplinary PracticesAll workers are treated with dignity and respect. During onsite audits, no corporal punishment or mental or physical coercion or verbal abuse were found.7、Working HoursThe organization‟s working hours policy is that the working hours per week is 40hs, 1 days off per week, the actual working hours observed at onsite audits generally complied with it‟s working hours‟requirement. However, 1 security guard was found work with excessive working hours in chatting.8．RemunerationThe salary paid for work month can meet legal minimum standards and could be sufficient to meet the basic needs of personnel. Payday falls on the 10th of next month, the salary is paid on time; social benefits and bonus are offered. Deductions from salary for disciplinary purpose are not found. Overtime in holiday and weekend are reimbursed at premium rate as defined by national law, but It was found that one w orker couldn‟t got overtime reward of 1.5 rates on workday overtime and one worker couldn‟t got 2 rates reward on Saturday during chatting.9、Management SystemsObserved documented Social Accountability 8000 management system‟documentations during onsite audit. QC manager is nominated as management representative. The worker representative was elected freely , However, the organization should pay more attention to below areas,•Insufficient social accountability requirement was defined in supplier / subcontractor management.•Employee communication with Social accountability was not enough.•SA8000 monitoring and auditing effectiveness should be improved.•The laws and regulations related should be updated regular ,Areas of Concern•There aren‟t emergency light and fire extinguisher and fire hydrant in the storage of material received.•There aren‟t fire extinguisher and fire hydrant in the wo rkshop of material rough finished.•There aren‟t fire extinguisher and fire hydrant in the workshop of material precision finished.•There is n‟t a licenses of two forklifts was running in the cool storage and could n‟t hung up number plate.•The alarm bell wasn‟t conducted regular to check its effectiveness.•There isn‟t an emergency light in the corridor of finished product storage.•The fire gate was blocked in the packing area. There isn‟t any fire extinguisher and fire hydrant in the packing workshop.•The organization couldn‟t take effective actions to ensure that such home workers are afforded a level of protection substantially equivalent to that afforded the organization‟s other workers under the requirements of this standard.•The organization couldn‟t conduct due diligence on the management systems of its suppliers/subcontractors and sub- suppliers‟ capacity for and performance of the SA8000 standard.•It was found that one worker couldn‟t got overtime reward of 1.5 rates on workday overtime and one wor ker couldn‟t got 2 rates reward on Saturday during chattingOpportunities for Improvement•The laws and regulations related couldn‟t update regular, such as national label law , SA 8000, Some major laws wasn‟t collected such as hazard waste material name list and hazard waste material handle regulation etc..•There isn‟t any mouse proof step in the making cool machine room•Some sundries was in the power distribution, the fire extinguisher was misplaced position •The storage condition wasn‟t provided for chemical storage, there is any fire sand in the around of storage.•The fire drill was conducted and attached photos, but the fire report wasn‟t provided.•The test report or survey report of PPE wasn‟t provided.•The elected evidence of worker representative and procedure of worker representative elected wasn‟t provided.•The national minority employee wasn‟t marked in the Non-discrimination policy.During our next audit the issues identified as requiring attention will be reviewed to ensure they have been adequately addressed, as well as the following:Make sure the AOCs have been taken actions.NEXT AUDIT PLAN To be determined.。