When affiliating with the FLA, companies (participating companies and licensees) abide by the methodology described below. The FLA process of code implementation and monitoring is in response to the regulatory vacuum in many countries, but it can never replace labor law. The FLA methodology involves companies adopting the FLA Code of Conduct and implementing a comprehensive compliance program, including internal monitoring, throughout their supply chain.
The FLA contracts with accredited monitors to conduct independent monitoring of the company's contract facilities, requires companies to remediate problems identified in their facilities and independently verifies and accounts for company internal compliance programs. Companies have three years to fulfill the Obligations of Companies, as set out in the FLA Charter. Below is a description of the seven aspects of the FLA monitoring program:
I.
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Code Of Conduct Implementation |
II.
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Internal Monitoring |
III.
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Independent External Monitoring (IEM) |
IV.
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Remediation |
V.
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Verification |
VI.
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Updates |
VII.
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Transparency Project |
I. Code Of Conduct Implementation
By participating in the FLA, a company commits to implementing the Code principles in the factories that manufacture its products. This requires designating a person or division in the company responsible for promoting Code compliance at all levels of the supply chain. Company compliance personnel must be trained and they in turn need to ensure that Code standards are recognized as a basis for continuing business relationships with suppliers and contractors.
II. Internal Monitoring
The obligation of companies to conduct internal monitoring goes beyond simply going to factories to inspect for problems. Companies are responsible for establishing an internal system of promoting respect for the Code standards, through education, monitoring and remediation.
The requirements of an internal monitoring program include efforts to:
- Inform workers of their rights under the Code - orally, by posting the Code standards in facilities, and through other activities to educate workers;
- Establish relationships with local labor and human rights NGOs and unions to assist in identifying situations of noncompliance with the Code;
- Train company monitors about the Code standards, applicable local and international laws, and effective monitoring techniques;
- Provide workers with a confidential reporting channel with which to report noncompliance to the company;
- Conduct periodic announced and unannounced factory visits, worker and management interviews, and audits of wage, hour and other employee records; and
- Establish means of remediation to correct and prevent noncompliance with the Code standards.
III. Independent external monitoring (IEM)
In addition to internal monitoring, companies that join the FLA agree to allow independent external monitors to audit their facilities for compliance with the Code standards.
The monitors are accredited and contracted by the FLA to conduct factory visits on an unannounced basis.
Click here for a list of FLA-accredited monitors.
Monitoring is a measurement tool, not a pass or fail assessment. FLA-accredited monitors report on the problems that they find with a view towards identifying areas for improvement and holding participating companies accountable for ensuring long-term and sustainable progress in factories.
In conducting an FLA monitoring visit, the Monitor is responsible for investigating the extent to which a factory is in compliance with the FLA Code, which includes the Code benchmarks and any applicable national or local law pertaining to the Code.
The specific procedures necessary for a thorough investigation are as follows.
Monitors are required to:
- Gather information from local knowledgeable sources (i.e. unions, NGOs, local civil society organizations, etc.) about factory-specific or general, local conditions;
- Conduct confidential worker interviews and interview factory management;
- Complete a visual inspection of the factory, including any dormitories;
- Review relevant records (i.e. payroll, time cards, personnel files, accident logs, etc.)
- Synthesize, cross-check and verify information gathered from various sources, including reconciling any conflicting information
- Based on an analysis of the findings, evaluate compliance with the FLA code of conduct.
The Monitor reports findings to the FLA and Participating Company Monitors who are required to report their findings and assessment to the FLA and Company within 10 days of monitoring the factory. Specific findings of any noncompliance with the FLA Code (including legal noncompliance) are documented on a Tracking Chart.
IV. Remediation
The Participating Company or licensee sets up and implements a remediation plan. The Company develops a remediation plan of recommendations for the factory based on the Monitor's findings and any findings by internal Company compliance staff.
Within 60 days of receiving the Monitor's report, the Company must report its remediation plan to the FLA, detailing the status of remediation efforts and the type of documentation, if any, that was obtained to verify completion.
Participating companies must demonstrate a commitment to promote sustainable improvements in factory conditions. Remediation plans for a facility vary according to the issue, but may involve such steps as:
- Making physical changes to the facility, such as installing additional fire exits or improving ventilation;
- Building capacity at the management level, such as improving production planning to reduce the need for excessive overtime; and
- Conducting training for management or workers in any of the Code provisions, such as training supervisors and workers in freedom of association or in the safe handling of chemicals.
The FLA maintains that companies should not pull production from factories that are found to be noncompliant with the standards; instead, companies are obliged to work with factories to improve conditions and protect the rights of the workers responsible for manufacturing their products. In cases where the factory is unwilling or unable to meet the requirements of the FLA Workplace Code of Conduct, the FLA recognizes that the company reserves the right to terminate its business relationship with the factory.
V. Verification
In order to independently verify the progress and effectiveness of a company's internal compliance program, the FLA:- Conducts an annual audit of the company's compliance program to review internal procedures and documentation;
- Makes field visits to observe the work of local compliance staff and assess factory conditions; and
- Reviews reports submitted by independent, external monitors to ensure that all noncompliance is remediated by the company in an appropriate and timely manner and, if necessary, schedules further factory visits by monitors.
