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FLA Independent External Monitoring:
Facts and Figures
In 2003, the FLA conducted independent external monitoring (IEM) visits to 110 facilities worldwide, representing approximately 5 percent of each company's applicable factory base in high-risk regions. In total, ten FLA-accredited monitoring groups spent over 1,056 person days monitoring 110 facilities worldwide, averaging 9.6 person days per monitoring visit1. Of these 110 visits, 31 were 'shared', meaning that two or more FLA-affiliated companies or licensees sourcing in the same facility participated in the remediation of the noncompliance issues reported by the FLA monitor. Shared audits enable companies to have a greater impact throughout their supply chains. Working together, companies pool resources to achieve shared goals; streamline the corrective actions required at a factory; share experiences in remediating particular noncompliance issues; and have greater leverage in making changes in the factory.
FLA Year Two IEM visits were conducted in 20 countries, with the greatest number occurring in East Asia (Graph 1.1).
FLA IEMs in Year Two - Regional Distribution
The regional breakdown of FLA monitoring visits roughly reflects the distribution of factories contracted by FLA affiliated companies, with the notable exceptions of two regions: Europe, Africa, Middle East (EAME) and Southeast Asia (Graph 1.2). This discrepancy is due to the weighting system in the software used to select IEMs; the software gives factories in higher-risk countries a preference for selection. While FLA companies have a significant number of factories in EAME (16 percent), other regions, such as East and Southeast Asia, are considered higher-risk regions. The location of monitoring visits is also influenced by the presence of FLA-accredited monitors in a given country. With a view to ensuring the flexibility of the FLA's independent monitoring program, the FLA is working to increase the number of monitors in key locations in addition to improving monitor training and audit tools.
Company Sourcing and FLA IEM Locations in Year Two
According to Year Two data, FLA companies continue to shift the regional distribution of their applicable facilities. While each company has a different sourcing strategy, most FLA companies have increased the number of factories that they contract in China. The number of factories contracted by FLA companies has increased in East and Southeast Asia more generally, while the number of factories in Latin and North America has decreased. These developments are especially interesting in light of the upcoming phase-out of the Multi-Fiber Arrangement2 quota system on January 1, 2005. Graph 1.3 shows the sourcing changes of FLA companies from 2003 to 2004 and highlights select 'Gains' and 'Losses.'
Changes in Supply Chain, 2004 vs. 2003
The 110 FLA monitoring visits took place in apparel, footwear, and equipment facilities. Ninety-seven visits were conducted in apparel factories, meaning the remaining 13 focused on footwear and equipment facilities. One notable difference between FLA company presence in apparel factories versus footwear factories was that each company tended to represent a considerably smaller percentage of total factory production in apparel facilities. A given apparel factory generally had many more brands buying from it, as companies tended to spread sourcing across many more facilities. Apparel factories also tended to have fewer workers; for example, the average FLA-monitored apparel factory had 972 workers, whereas the average FLA-monitored footwear facility had 5,883 workers.
Table 1.1 provides a profile of the aggregate workforce present in FLA monitored facilities, and the interviews conducted in the audited factories. More than 3,000 of the workers who were present at FLA-monitored facilities in Year Two were interviewed during the reporting period.
| Table 1.1: Population Profile of FLA Independently-Monitored Factories*
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| |
Female |
Male |
Total |
| Work Force |
|
|
|
| Total |
118,121 |
34,874 |
152,999 |
| Average/factory |
1,135 |
336 |
1,471 |
| Interviews Conducted |
|
|
|
| Total |
2,390 |
992 |
3,382 |
| Average/factory |
23 |
9 |
32 |
| *Please note that these numbers only represent the factory populations of 104 of the 110 factories subject to IEM's in Year Two. Information on the remaining 6 facilities was not available at the time this section was drafted. |
Go to Summary and Analysis
1The term 'person days' refers to the number of audit days, counting each auditor separately. For example, if a monitoring team consisting of 3 auditors spends 3 days in a facility, it would be considered a 9 person day audit.
2The MFA was established in 1974 to reconcile interests of textile-exporting and textile-importing countries by establishing quotas. These quotas set parameters for international trade based on textile. Under the Uruguay Round agreement, countries agreed to eliminate the MFA quotas in phases to begin July 1, 1995 and to end July 1, 2005. Many believe that eliminating quotas will lead to increased sourcing in China and other countries and to decreased sourcing in others. For additional information see the following memo: http://www.theglobalalliance.org/pdf/yanz-fiber-article.PDF
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