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INTRODUCTION
1.1 BACKGROUND
Manufacturing sector accounts for about 16.5% of GDP. The textile, apparel and leather
product sector is the largest, accounting for 44% of total industrial output. The second
largest industrial sector at 24% of total manufacturing output is food, beverages &
tobacco. Majority of these companies are situated in the export processing zones (EPZs)
also known as Industrial Promotion Zones (IPZs). However majority of the companies
situated in these zones are apparel and apparel accessory manufacturers and exporters.
Free trade zones are setup under the Board of Investment (BOI) act. Enterprises governed
by this act enjoy special benefits such as tax holiday and other concessions.
Most of the apparel sector customers (our buyers) are world’s number one branded
apparel marketers. There was an era in late 70s that there was a huge market for fashion.
Though manufacturing of apparel was started from Europe high cost of manufacturing
shifted the trade towards the Asia and Africa. Later they, their supplier and buyers found
that some countries used unethical means of labor such as low salary, continuous
They sought to ensure that their goods (goods that produce in our country) are produced
in good working conditions. It’s a true fact that when people are treated with respect, in
decent working conditions and faire rates of pay, then both they and their companies
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benefit from increased commitment and productivity. Customers benefit too from goods
Achieving this objective has come through the development of agreed standards between
customers and suppliers, regular pattern f visits, compliance audits and a policy of
continual improvement backed up by strict sanctions when standards are not met.
1.2 SIGNIFICANS
As I stated that major portion of our GDP is based on textile, apparel and leather we must
protect this trade for the betterment of the country and the community. Meeting the
expectations of our customers is the key to success full business. To meet the
expectations of the customers we must meet the basic expectations of our employees.
Since our customers demands are very high standards they want consistently high quality
products delivered on time. We know that poor working conditions have a negative effect
on quality and productivity. Tired and demoralized workers cannot deliver the standards
that we expect. Improving working conditions in our factories will help us meeting orders
more effectively and strengthen relationship with employer, employee and employer
customer.
Majority of the global customers believe that high work place standards, good health and
safety, fair pay and care for the environment make a real difference in creasing
productivity, reducing risk, cutting costs and improving quality. (p-04, chapter 05, Global
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1.3 PROBLEMS
Major part of the problem comes when the owners/management of the company neglects
the ethical trading practices, compliance of workers in order to gain more profits or lack
in management skills. What ever the reason they do this they are losing the employer,
employee relationship and the valuable customer. Lack of compliance may lead to slower
production, production of defects, accidents and sick leading lose of man hour. At last
this may lead to sabotage and strikes causing all efforts and investments in vain.
This is the utmost task of Human Resource Manager to convince the owners and
These valuable buyers or our customers have developed there own global sourcing
principles which set out clearly what they expect from all businesses producing their
merchandise. And they committed to work with there suppliers to meet international
standards as members of the ETHICAL TRADING INITIATIVE (ETI), which they have
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CHAPTER 02
LITERATURE REVIEW.
government in relation to managing people. If legal compliance does not exist survival of
the organization will jeopardize owing to incidences of divers industrial conflicts such as
strikes. Sri Lankan government has imposed a set of labor laws some of which are given
below.
legitimate provisions imposed by the labor laws. For instance if an organization requires
a worker to work on a full moon poya day, the worker is to be paid at a rate not less than
one and a half times his/ her normal daily rate of payment according to the Shop and
Office Employees Act. Another example as per the same act, a person who has not
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attained the age of fourteen years shall not be employed in or about the business of a shop
or office.
Prof. Dr. Henarath H.D.N.P. Opatha - Human Resource Management booklet for MBA –
(p-5)
As I mentioned in chapter 1 our customers are very important, in the business as well as
the global demand and supply for the particular brands. Comparison to the market
imposed these global sourcing principals and other ethical trading rules, manufacturer to
The people working for there suppliers are to be treated with respect, and their health,
safety and basic human rights are to be protected and promoted. Each supplier must,
as a minimum fully comply with all relevant local national laws and regulations,
Employee compliance is well conversant with the maslow’s need hierarchy theory for the
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encompasses all human needs that the customers, employees and the government laws
basically expects.
1. Physiological needs: These are basic to life. These include thirst, hunger and
companionship. They are relatively independent of each other and in some cases
can be associated with a specific location of the body. These needs are involved in
2. Safety Needs: Also called security needs, and find expression of such desires as
economic security and protection from physical dangers and a desire for an
orderly and predictable world. Like physiological needs these become inactive
once they are satisfied. An individual who is safe, feels endangered no longer, and
individuals want to associate with others to gain acceptance, and to give and
receive friend ship from them. People do not work for money alone but also for
outlet for their social needs. A simple index of the satisfaction of social needs in
organized settings is the frequency with which employees spend their free time
together, and away from work situations. E.g; games and outings. However
associations with others are also based on like mindedness. Thus people becom
friendly only with those who feel and believe the way they do.
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4. Esteem Needs: These refer to a desire for firmly based high evaluation from
others for self respect and self esteem. They include those needs which indicate
Competitiveness and a desire for the approval of one’s performance by peers are
important esteem needs from the point of view of an organization. They can be
5. Self - Actualization Needs: These refer to self fulfillment. The term self
actualization was coned by Kurt Goldstein and means “to become actualized in
what one is foot at.” A person may achieve self-actualization in being the ideal
• Social, Esteem and self actualization needs are categorized as Higher needs.
These needs are arranged in a lowest to the highest hierarchy. Unless the lower order
needs are first satisfied, even partially, the satisfaction of higher order needs will not be
possible. Thus psychological needs have to be satisfied before we can think of security.
Security and physiological needs have to be satisfied before one move up to the social
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Therefore this has to be monitored continuously for the smooth function of the
organization.
Some organizations they themselves carry out compliance, health & safety audits which
we will be discussing later. On the other hand global customers have their own audits
carried out prior to place the order and while the production is going on.
In general employee welfare, Health & safety administration is the group activities
legitimate, fare and adequate compliance system in order to achieve goals of the
organization.
World health organization (WHO) defines the aims occupational health as the prevention
and maintenance of the highest degree of physical, mental and social well being of
workers in all occupations; the prevention among workers of departments from health
caused by there working conditions; the protection of workers in their employment from
risks relating to factors adverse to health, the placing and maintenance of workers in an
environment; to summary the adaptation of work to man and each man to his job.
Prof. Dr. Henarath H.D.N.P. Opatha - Human Resource Management booklet for diploma
in HRM.
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EMPLOYEE WELL BEING
SAFETY
Environment
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2.5 CONSEQUENCES OF OCCUPATIONAL HEALTH & SAFETY
NEGLIGENCE.
life. Ineffective,
4. Organizational stress Confusion, negligence, Low productivity.
tension.
Industrials are mainly due to human failure some where in the chain of circumstances
which lead to the injury and it is an unexpected occurrence that interrupts regular process
of work.
1. Insured Cost:
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Under workmen’s’ compensation laws there is an immediate cost of an
injured employee.
2. Uninsured cost:
b. Cost of wages paid for the time lost of workers not injured.
1. Relating to machines.
2. Human Causes.
3. Environmental causes
4. Miscellaneous.
Apart from above factors Low Quality Work Life is highly affecting the compliance
issues. They could lead or cause any of those factors and conditions discussed above.
They are:
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c. Ineffective pay system.
d. Unfulfilled expectations.
e. Discrimination practices.
Stress is another major factor affecting the employees when considered the compliance.
If employee compliance are well looked after employers/managers can overcome the
b. Organizational changes.
c. Crowding.
d. Lack of privacy.
e. Over work.
f. Unattainable targets.
CHAPTER 03
METHODOLOGY
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3.1 GLOBAL SOURCING PRINCIPLES (GSP).
appropriate to the industries and countries producing the goods. It is the suppliers’
2. The people working for their suppliers are to be treaded with respect and their
health, safety and basic human rights are to be protected and promoted. Each
supplier must as a minimum, fully comply with all relevant local and national
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2. Freedom of association and the right to collective bargaining are respected.
7. No discrimination is practiced.
An alliance of:
3. Trade unions.
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2. Local & national laws. 3. Freedom of association.
product.
According to this comparison it’s very clear that the both pacts are similar and expect the
same standard. Our next comparison should be law of the land with above two pacts and
3.5 COMPARISON BETWEEN COUNTRY LAW AGAINST THE GSP & ETI
CODE.
1. Child labor: It was well met under the local laws and explained further controls
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2. Employment Freely Chosen: This is also well defined under the country law and
strengthen them.
3. Health and Safety: The labor standards and relations pamphlet of the BOI
of race, religion, nationality, language, social status, political ideas, disability and
union membership. Also conditions are clearly endorsed in the BOI regulation
too.
7. Hours of work: Generally this is also same except for OT hours. Local labor law
allows up to 60 OT hours a month where GSP and ETI allows only 48 hours.
Apart from OT pregnant women and people under the age of 18 have exceptional
facilities.
8. Wages, Benefits and Employment: This is specified lengthy and in detail meeting
Comparatively country laws are meeting the GSP & ETI standards very well. But the
factor is implementing and maintaining these laws. Also monitoring of these is very
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CHAPTER 04
INTERPRITATION
Meeting and maintaining of these standards are not an easy task. According to the GSP
and ETI they used to carry out compliance audits prior to give an order and as well as
they do audits and visits to the sites during the time their order is going on. To achieve
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and maintain these standards there are methods of regular auditing and site check ups
In most of the MAS holding factories have a safety officer or dedicated HR personnel to
carry out regular site visits and local audits. This is a proven method to maintain
• Audit of OSH.
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• Review the relevant literature- what is in textbooks may not find in real
• Pre-inspection
• Inspection
• Post-inspection
Pre-inspection-prerequisites
• List of products (finish good) their chemical physical and biological nature
Pre-inspection prerequisites
Information about work place
Pre-inspection
• Process or work flow chart- schematic diagram of factory/work place lay out
• Intermediate products-list-hazardous?
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• Final products-list-hazardous?
Pre inspection
Workplace inspection
Inspection walks through
• Health hazards
• Safety hazards
• Warning signs/signals
• Waste disposal
Health hazards
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relationships, job tasks, job targets, dead lines, overtime, shift work
Health hazards
Work place inspection
Chemical safety
Chemical safety
• Explosion- anticipate, plan in advance, expect the worst outcome & plan to
prevent
Safety hazards
Safety hazards
Unsafe working at height
congestion of machines
Tanks
• Supervision
• Suitable PPE
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4.4 WELFARE FACILITIES
Serious blow to the production, worker unrest, trade union activities hamper
hygiene & sanitation, cleaning on daily basis, workers commitment to keep clean.
• Medical facilities-quality of care, in-house doctor, visiting doctor, refer to out side
institution, qualified nurse to man the medical centre, quality of drugs & medical
equipments
• First aid facilities- items , adequate quantity for the workforce, quality, locality of
first
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• Medical examinations- on regular basis- identification of chronic degenerative
ailments
• Resources spend on medical care is a very good investment for the long run-
Healthy
• Working uniforms- suitable material, type, depends on the nature of the job task,
kind of
the uniform- overalls -production oriented industry- ship yards, metal industry
• General ventilation- air flow, air velocity, air inlets & out lets, their adequacy, any
• Push & pull ventilation- exhaust & blow fans- their effectiveness, adequacy
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• Illumination (lighting)- depends on the nature of the job. more precision work-
more
illumination including local illumination with general illumination. too bright &
object- MSD
appropriate places, removal of unnecessary stuffs from the work place -provides
more space
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4.6 TOOLS AND TECHNIQUES
• Isolation/segregation
• Good work practices- Training (safety & vocational), re-training, on the job
training
• Properly displayed safety & warning signs & signals- appropriate messages at
appropriate places
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4.7.2 Other work areas
• Loading & unloading areas- accidents & injuries are common due to negligence
• During break downs & shut downs of normal work routine safety mechanisms
may not
dB for 8 Hr exposure
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• Quality of chemicals purchased-name of suppliers, their standards, reputation
• Safety policy -workers are educated and made aware of the safety policy, safety
policy
decisions
• Safety committee is met at least once a month to review the current safety status
• Proper implementation of the safety policy -contribution from all quarters from
top to
Bottom
• Work related health problems- be a good listener & observe non verbal emotional
• Workers morale
• Nature of work- dangerous work with minimum safety measures, hazardous work
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• Inspection report-identify the problems and list them out in priority order
organization to be contacted.
CHAPTER 05
CONCLUTION
Goal of every business organization is similar and solid that is to gain profits. But when
they are trying to reach this tend to use various methods. What ever the method used it
should be ethical and faire in general, according to the GSP, ETI or country law. The
most important stake holder we consider is the customer. But it’s a proven factor that to
satisfy the customer we must sell the product in a competitive price with maximum
profits with the best quality. To do all these we must have a set of dedicated, trusted,
efficient and knowledgeable employees. Employees to achieve the above said standards
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That is what we discussed above how to keep thee happy healthy and free of stress. Them
they will be dedicated, trusted, efficient and thirst for knowledge to success the
organization. In the cause of achieving those organizations must carry out regular audits
These processes of caring of workers are another way of winning their hearts and minds
since it involves high human interaction. Therefore rectifying any lapses helps to improve
or boost the moral of employees which is the utmost important and happiest achievement
06 References :
6. Physical & biological hazards of the work place – Peter H. Walt & Gregy M
Stave. 2002.
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8. H & S manual – Noyon Lanka (pvt) Ltd.
07 ANNEXES
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