The document is a summary of non-compliances from a recent factory audit by Primark auditors. It discusses 17 issues found in the audit relating to occupational health and safety, worker compensation, and legal requirements. It provides Chris's comments on each issue based on an on-site review, noting that some issues have already been addressed while others require additional time and documentation to resolve. Chris requests a meeting the next day to further review documentation and discuss any outstanding problems.

1. Mail của Chris
Thanks for your time for today's audit preparation, please help to bring my thanks to other attendees,
Bao, Tuan, Quoc, Trung, Thu as well.
As what I said in today's closing meeting, the big issue I met today is, part of factory I will be under
construction soon, the production stopped, semi-finished products warehouse, yarn production
process and weaving process were settled here before. But now, they were move to site 4, where
was not accessed by auditor last time. Yarn production process can be assessed in Factory III, but no
weaving process was visible in Factory II and Factory III, this is the key process for bag production, as
for a full audit, this process must be reviewed during audit. If you can postpone the construction
plan 2 weeks later, let's say after BRC audit, and to restore the original appearance, that'll be great.
As per our audit plan (also confirmed with factory before), it doesn't allow the factory spent 1 month
to recover. I hope you can shorten the time frame. Anyway, please let me know your final decision
by tomorrow morning.
Below is the brief summary regarding to the findings issued by Primark auditor for your reference. I will
review the documentations as planned tomorrow morning in the meeting room.
No. Non-Compliance
[please include reference to local
law requirements]
Comments by Chris on Jun 15, 2016
1 There is no smoke detector or
sprinkler in chemical storage room
and stocked bag warehouse in
factory 1.
With on-site review, factory installed smoke detector
in the warehouse, but not maintain smoke detector
checking records, need to prepare relevant records.
Factory can finish it by Friday.
2
Some machine oil containers in
chemical storage room do not have
proper labels.
With on-site review, chemical materials in the
warehouse were with proper labels. Suggest factory
prepare secondary container for liquid chemical
materials, and have someone to check the material
label termly.
3
All electrical boxes and control
panels in 3 factories are not well -
equipped with anti - shocking mats
to ensure workers' safety.
With on-site review, found some of anti-shocking
mats' size are not big enough. Some electrical boxes
still not be with anti-shocking mats, for example in
canteen area of Factory II. Some mats are not settled
in the right area, for example, in Factory I.
4
Some electrical wires in 3 factories
are not well - insulated.
With on-site review, still found some wires are not
well insulated. - factory will check all the wires again
to reduce the safety risk.
5 Some staircases in yarning areas of
factory 1 and PP Multi yarning
section of factory 3 only have one
handrail.
With on-site review, handrail installed in Factory III is
ok, but factory also need to prepare handrail
checking records.
6 Some lights in PP warehouse &
chemical storage room of factory 1
and finished goods warehouse of
factory 3 do not have anti -
explosive covers.
With on-site review, most of lights were with
explosive covers (although they are not standard,
factory will try to change to standard ones, but need
to step by step), there are 2-3 lights missing explosive
covers.
7 Some running belts of machines in
laminating area of factory 1 and PP
With on-site review, the machines with running belt
in Factory II without covers, about 50% sewing

2. No. Non-Compliance
[please include reference to local
law requirements]
Comments by Chris on Jun 15, 2016
Multi yarning machines of factory 3
do not have complete covers.
machines in Factory II did not have completed belt
cover. Factory can finish the corrective actions by
Friday.
8 Clinic room of each factory only has
one bed.
Auditor suggested factory to have 2 beds in each
clinic room, with on-site review, this should be ok.
9
There are insufficient lights for
training room and sample room of
factory 2.
The reason cause to this finding is some lights in this
room were broken, factory had changed new lights
and all ok now. Suggest factory to check all the lights
within 3 factories, including production area,
inspection area, workshop office area, etc. to make
sure all the lights do work. - this should be check
before the end of this week.
10
There are no exit signs and
emergency lights at exit door of
sample sewing room on the 1st
floor
and staircases of factory 2.
With on-site review, the NC found by audit was
improved, but the emergency exits are not enough in
yarning section of Factory III, only one emergency
exit available in this area. Factory agreed to add one
emergency exit in this area, need to add exit
identification/sign and emergency light, the door also
need to change the opening direction of the door.
This need time to prepare, suppose to be finished by
the end of this week.
11 Forklift of factory 2 is not locked
and the forklift fence is not strong
enough to ensure workers' safety.
Additionally, the fence of the
mezzanine of factory 3 where PP
bags and carton boxes are kept is
not strong and safe enough.
With on-site review, the corrective action on forklift
is ok. But for the fence of the mezzanine of Factory
III, found they are not strong enough, somewhere
ever has gap in the button, not safety enough.
Factory promised to improve immediately and
supposed to finish it before Saturday. Factory also
need to prepare checking records.
12 Factory does not round to 1 if
the decimal of the calculation of
entitled annual leaves is larger
than 0.5 as the law requires.
Furthermore, factory only pays
100% the basic salary for
remaining annual leaves at the
end of the year 2015 when
factory does not determine/
notify a timetable for annual
leaves of workers in advance.
Documentation review by tomorrow.
13 Severance allowance is not
settled within 7 days of
termination or resignation as
per legal requirements.
Documentation review by tomorrow.
14 Factory provides first aid training
for internal first aid team (38
workers) but has not yet conducted
Documentation review by tomorrow.

3. No. Non-Compliance
[please include reference to local
law requirements]
Comments by Chris on Jun 15, 2016
first aid training for all workers
about basic response to accidents
(together with OSH training) as per
legal requirements.
15 Resigned workers who had
maternity leave during their
employment period did not receive
the severance payment for these
maternity or probationary and
apprenticeship periods which were
not covered by the unemployment
insurance as required by law.
Documentation review by tomorrow.
16 When workers' actual piece-rate
earnings are below minimum wage,
factory compensates workers at
least minimum wage for ordinary
hours of work. However, in
February when there are 25 normal
working days, factory divides by 26
days instead of 25 days as per legal
requirements and therefore their
piece rate compensation is
calculated incorrectly. Additionally,
factory does not deduct the period
of time when workers join trainings
such as fire drill trainings, first aid
trainings, health checks etc. when
calculating piece rate payment.
Documentation review by tomorrow.
17 OSH collaborator network is not
provided with responsibility
allowance.
Documentation review by tomorrow.
Should you have any problems, let's discuss tomorrow.