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adidas-Salomon - FLA Independent External Monitoring in Applicable Facilities
A. An Introduction to FLA Independent External Monitoring
FLA independent external monitoring (IEM) is one way that the FLA verifies Participating Companies’ compliance activities in the factories where they produce. The FLA conducts unannounced independent external monitoring visits in approximately 5% of all Participating Company applicable facilities that are deemed to be high risk (and no less than 3.5% of the company’s total factory list), and reports on all noncompliance findings in those factories. By observing these monitoring reports and the company’s ensuing remediation, the FLA can verify a company’s progress in developing systems for effective prevention and remediation of noncompliance issues each year. The FLA tracking charts provide detailed information about monitoring findings and adidas’ approach to remediation of noncompliance issues.
B. Summary of FLA Year Two Independent External Monitoring in adidas' Applicable Facilities
The following table provides information about FLA independent monitoring visits undertaken in adidas' Applicable Facilities in Year Two. It provides background information about the factories, the monitors, and their visits.
| adidas-Salomon Independent External Monitoring (IEM) Summary - Year Two |
Number of IEMs in Year Two: 13
Remediation shared with other FLA Companies: 6
Remediation undertaken independently: 7 |
Total person days spent monitoring facilities: 83
Please note: This total does not include the audit conducted by COVERCO in Guatemala. COVERCO's methodology differs from the standard FLA audit in that monitors visit the factory repeatedly over a four-month period and a total number of person days is not calculated. |
| Average person days per facility: 7 |
| Average number of workers per independently monitored facility: 1,603 |
| Regions |
Independent External Monitoring Visits |
FLA-Accredited Monitors Conducting Visits |
| East Asia-- China |
2 |
Bureau Veritas (2) |
| Southeast Asia-- Vietnam, Indonesia, Thailand, Malaysia, |
7 |
Global Standards (3), Bureau Veritas (1), Kenan Institute Asia (3), |
| South Asia-- Pakistan |
1 |
Societé Generale de Surveillance (1) |
| Americas-- Mexico, Guatemala, Honduras |
3 |
A & L Group, Inc. (2), Coverco (1) |
C. Independent External Monitoring Results
Chart: adidas-Salomon Noncompliance Issues Grouped by Code Provision*
Number of IEMs = 12**
Please note: This pie chart provides a very cursory overview of
noncompliance issues organized by FLA Code Provision. Click on any Code
Provision name in the legend below for a list of FLA Benchmarks that are
used to measure compliance with that Provision. A more detailed explanation
of these issues follows in the sections following the pie chart.
* Please visit the FLA tracking charts to learn more about adidas-Salomon approach
to remediation of all of the issues summarized here.
** Because the report for one of the facilities was not available at the time when this report was written, this chart is based on 12 out of 13 factory reports
The figure above displays the percentage breakdown by Code Provision of the total non-compliance issues reported by FLA independent monitors in adidas facilities, which adidas addressed through remediation in Year Two.* Non-compliance findings with regard to Health and Safety were the most frequently reported issues, making up 33% of the total non-compliance issues identified2. The most commonly reported and remediated Health and Safety issues were related to inadequate postings and evacuation procedures, safety equipment, personal protective equipment, and machinery maintenance.
Noncompliance with the FLA's Hours and Wages standard was also common, with a total of 40% of all findings relating to Wages and Benefits (25%), Hours of Work (8%) and Overtime Compensation (7%). The top Hours and Wages issues that were reported by FLA monitors and taken up by adidas through corrective action plans were related to overtime limitations, overtime compensation, worker awareness of their wages and benefits, and the factory's provision of legal benefits to workers.
Noncompliance with other Code Provisions was reported by FLA monitors with less frequency. As discussed in previous sections, the FLA is working to develop systems for more effective monitoring and remediation of the Code Provisions that are particularly complex and difficult to assess, such as Freedom of Association and Collective Bargaining, Nondiscrimination, and Harassment and Abuse.
There were no findings of forced or bonded labor in facilities producing for adidas. Likewise, there were no findings of underage workers in these facilities. The Forced Labor (2%) and Child Labor (1%) noncompliance reported above related to other benchmarks categorized under these Code provisions. Please follow the links in the graph above to learn more about the benchmarks for these and other FLA Code provisions, and visit the FLA factory tracking charts to learn more about adidas' approach to remediation of remediating all of the noncompliance issues mentioned above.
Click here to review the FLA's aggregate findings from visits to factories producing for 25 Participating Companies and Category B Licensees.
2Health and safety are often the most evident and measurable issues in a facility, and therefore figure very highly in the total number of findings.
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