Newsletter. January 2013 Issue #2 Summer Edition. Buyers Forum 2012

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1 bulletin Better Work Lesotho welcomes the following factories in the programme: Formosa, J&S Fashion, Tai Yuan Garments, Sun Textiles, and Super Knitting. Newsletter The project s second Compliance Synthesis Report, which will present aggregated findings of 14 factories assessed in 2012, is under preparation and will be published in the second quarter of In the months to come Better Work Lesotho and its partners will organize 2 Occupational Safety and Health (OSH) awareness-raising events, one to be held in Maputsoe in March and another one in Maseru in April, on the occasion of the World Day for Safety and Health at Work. The events will highlight the importance of emergency preparedness, with an emphasis on fire safety measures. In This Issue PAC Members Factory Focus Labour Law Watch Fire Safety Training 2012 Q4 p4 p5 p6 p8 p9 January 2013 Issue #2 Summer Edition Buyers Forum 2012 On 8 October 2012, Better Work Lesotho (BWL) held its second Buyers Forum in Maseru, attended by representatives from The Gap Inc., Walmart and Levis Strauss & Co. The Forum provides a platform for buyers to discuss with the Better Work team project progress, core services delivery and events and developments related to Lesotho s garment industry. It also offers buyers the opportunity to meet with project stakeholders from the Government, the employer associations and the five sectoral unions in garments. Frequent industry non-compliances and BWL remediation measures, implementation of assessment and advi- 1 sory services as well as forms of buyer engagement in the programme were among the main topics discussed during the Forum. Buyers welcomed BWL s strategy toward more trainings in Chinese, shorter trainings to minimize the time that training attendees have to spend away from the factory, and the launch of a new course on management systems. National project stakeholders updated buyers on the status of annual minimum wages talks that at the time of the Forum were not completed yet - the reason being continuing disagreement over the percentage increase in the context of worker representatives demand to increase minimum wages up to the level of a living wage. (The new minimum wage for the clothing, textile and leather manufacturing sector was eventually set at 9% and published in November 2012.) Other topics included the Government s strategy to diversify investment into sectors other than textile and garments in light of uncertainty of an AGOA extension beyond 2015 and the transformation of the country s regional skills training centers from mainly donor-supported organisations into more sustainable Public-Private Partnership entities. On 9 October 2012, as an add-on event to the Buyers Forum, Walmart offered a 1-day training on machine and chemical safety and environmental issues for its suppliers and other BWL participating factories. The training, conducted by Mr. Abid Manzoor, Walmart Supplier Development Specialist, was well received by attendees, including 20 participants representing 10 factories..../continues on page 2

2 Buyers Forum 2012 flashes Clockwise from top left: Susanna Harkonen from Better Work Global. Vic van Vuuren (Director ILO Pretoria); Abid Manzoor (Supplier Development Specialist Walmart); Nkopane Monyane (Deputy President LTEA) Jackie Lin (Factory Manager Nien Hsing International); Daniel Bu (Group Compliance Manager Nien Hsing); Alan Han (Assistant Vice President in Chairman Office, Nien Hsing); Ryan Chen (Sales Manager Formosa Textile); Loida Castro (Compliance Manager, TZICC); Loida Castro (Compliance Manager, TZICC); Abid Manzoor (Walmart), Kristina Kurths (Project Manager Better Work Lesotho) 2

3 Welcome Note from the Project Team For further information please contact: Better Work Lesotho Office Better Work Lesotho welcomes readers to its first Newsletter in 2013, highlighting events and activities that took place between October and December We are also pleased to introduce new features such as Factory Focus, which explores one factory s experience with Better Work services, and Labour Law Watch, which draws attention and understanding to labour code requirements. The last quarter of 2012 saw a notable increase in factory subscriptions, bringing the total number of factories in the programme from 17 up to 22. New participants include Formosa Textile, J&S Fashion, Tai Yuan Garments, Superknitting and Sun Textiles. Almost 90% of members of the Lesotho Textile Exporters Association (LTEA) have by now signed up to Better Work. We would like to take this excellent news as an opportunity to thank all factories that participate in the programme LTEA and non-ltea members for their continuous cooperation. And we extend special appreciation for participating garment factories producing exclusively for the local market. Also, we would like to express our thanks to Better Work Lesotho participating factories that have filled in our Factory Client Satisfaction Survey Your feedback will help us to improve further our assessment, advisory and training services and better understand and respond to our clients needs. The year ahead of us will again be a busy one, in which we aim to deliver quality services and increase awareness related to OSH and other key compliance issues. We will expand our training programme by offering more courses and also look into how to make the work of worker/management committees more effective in assisting factories to resolve non-compliance issues. We look forward to a productive and successful year, in close cooperation with all our project partners. The Better Work Lesotho team takes a break during their annual workplanning session. 3

4 News about Project Advisory Committee members The Association of Lesotho Employers and Business (ALE) and the Lesotho Textile Exporters Association (LTEA) are both members of Better Work Lesotho s Project Advisory Committee (PAC), which provides strategic guidance on programme management....about ALE Advocate Lindiwe Sephomolo CEO, ALE The ALE was established in 1961 to facilitate dialogue between the Government, employers and employees through their trade unions. It was registered in terms of the Labour Code 1992 section 173. The Association, which changed its name to Association of Lesotho Employers and Business in 2006, is recognized as the official representative of the employers of Lesotho by the Ministry of Labour and Employment. According to its Constitution, the main objective of ALE is to promote the interests of business in Lesotho through lobbying and advocacy and the provision of demand-driven services. Advocate Lindiwe Sephomolo, a lawyer by profession specialising in labour and commercial law, was recently appointed as Chief Executive Officer of ALE. She previously worked at ALE as the Deputy Executive Director for over ten years before pursuing other interests. She was advisor to the Ministry of Trade and Industry, where she conceived and developed a Memorandum of Understanding which strengthened the governance of the One Stop Business Facilitation Centre. She also had a short tenure at the Private Sector Foundation of Lesotho, where she was appointed as its first CEO. ALE is looking at enhancing advocacy to influence policies and programmes towards a conducive business environment, enterprise growth and development; to improve service offering to meet membership needs, especially those of Small and Medium Enterprises; and to align its strategy to the National Strategic Development Plan and the Decent Work Country Programme of the International Labour Organization (ILO). ALE has expressed its full endorsement of Better Work and would like to use the programme s principles to ensure compliance in other industries....about LTEA The Lesotho Textile Exporters Association (LTEA) is a business chamber that serves its members in the textile and garment industry. Established more than 10 years ago its primary function is to assist member factories with export business-related issues. LTEA also concerns itself with lobbying for the extension of the US African Growth and Opportunities Act preferential trade agreement; dutyfree import of third party fabrics; and promoting exports to South Africa. Recently elected as president of LTEA is Mr Chien-An Lin, who previously served as Managing Director of Formosa Textile. Mr Lin came to Lesotho overseeing the construction of the Formosa Textile factory and thereafter ran the factory until His experience in the textile industry dates back more than 45 years, including the construction and management of various textile factories in Taiwan and China. Mr Lin is supported by Mr Whai-Min Li, the newly appointed secretary of LTEA. With the majority of LTEA s members already subscribers to Better Work Lesotho, LTEA is looking forward to continue its partnership with the project. Special areas of interest include training on supervisory skills, and the improvement of communication between workers and management at plant level. Mr Chien-An Lin President, LTEA 4

5 FACTORY FOCUS Maseru E-Textiles Interview with Mr. Lu Fang, owner of Maseru E-Textiles management toward worker issues. Lu Fang also started to invite PICC worker members to attend management meetings outside the PICC structure. The vibrance of Maseru E as all kinds of colourful knitwear are being manufactured. When meeting Mr. Lu Fang, the owner of Maseru E-Textiles, one is instantly captivated by the energy that he radiates. He joined Better Work Lesotho (BWL) in early 2011 when he saw that his factory could benefit from the project s services in a number of areas. Since that time, working with a BWL Enterprise Advisor, he has implemented numerous measures to improve occupational safety and health conditions in the factory and resolved non-compliance issues relating to contracts and compensation. His staff regularly attends training offered by BWL, including Chinese supervisors who participate in training held in Chinese language. According to Lu Fang, the Performance Improvement Consultative Committee (PICC) has also been beneficial to change. Workers complaints are now being listened to, discussed and taken seriously. Overall communication with the unions represented in his factory has improved as there is more openness from the Good progress has been made, but Mr. Lu Fang is aware that there is still a lot of work lying ahead of him, the PICC and other staff members to improve his factory s working conditions. It is noteworthy and encouraging though that the factory s subscription to Better Work Lesotho also seems to have a positive impact on its order situation, according to Mr. Lu Fang. I feel that buyers acknowledge my participation in Better Work, he says. While in the past I did orders on a subcontractor basis only, I have now direct buyer business relationships as well. Mr Lu Fang, Owner, Maseru E-Textiles Factory Focus is a new feature and will appear in every issue of Better Work Lesotho s quarterly newsletter. 5

6 REGISTERED HEALTH & SAFETY OFFICER Labour Code Order, 1992, Section 97 (1) Every employer of more than 100 persons at any place of work shall appoint a registered safety and health officer for the purpose of exercising general supervision regarding compliance with the provisions of this Part [section 97] and generally to promote the safe conduct of work. this issue, Labour Law Watch is looking at the legal requirements of a registered Health & Safety In Officer in Lesotho. For many factories, having a Health & Safety Officer does not present a challenge in itself, however the process for registering such an Officer under the requirements of the Labour Law can seem demanding and unclear, leading to several questions arising from the industry. To begin, we quickly want to make a distinction between the terms Health & Safety Officer (HSO) and a registered HSO (as per the law). A factory-identified HSO is a person who has a sound understanding of what health and safety is and preferably has completed courses on health and safety. A person with no background or experience in health and safety is strictly speaking not an HSO. A registered HSO is an HSO that has met certain qualifications set by the Department of Labour. Typically this person has an education in health and safety or abundant experience in the field and is able to do a complete risk assessment. To become a registered HSO, a candidate needs to apply for registration at the Department of Labour and then undergo an assessment; upon successful completion, they will be registered within the ambit of the legal requirement. This all means that if a company has an unregistered HSO it is not in compliance with the law. To get clarity on this matter we have spoken to Ntate Teboho Mafooa at the Ministry of Labour and Employment on the procedure for getting your Health & Safety Officer registered. What becomes evident is that the Department of Labour is taking a serious stance on health and safety and therefore also expects the same standard from those that want to register as health and safety officers. The issues discussed were firstly that there does not seem to be a supply of qualified people in Lesotho who can be employed as registered Health & Safety Officers, and secondly that there are not enough training facilities to assist the factories in training current Health & Safety Personnel. 6

7 Follow these steps to ensure compliance: Every factory must appoint a person who is in charge of Health & Safety. This person cannot have other additional functions, such as security or personnel. This person exclusively deals with Health & Safety. The appointed Health & Safety Officers must have themselves recorded at the Department of Labour, irrespective of whether they qualify to be registered in terms of the law or not. If your HSO successfully passes the Department of Labour s evaluation they will be recorded as a registered HSO. Ensure that your Health & Safety Officer is yearly recorded and updated at the Department of Labour. Whenever your HSO leaves your employment, immediately inform the Department of Labour. The moment a new one is appointed make sure they are registered as soon as possible. For Management: Factory management should first and foremost strive to hire a qualified Health & Safety Officer. When they cannot find a qualified one, they can appoint someone with some experience/qualifications and assist them by sending them to relevant trainings. Ensure registration of the appointed Health & Safety Officer at the Department of Labour as soon as they have acquired the necessary qualifications and experience. For new/unregistered Health & Safety Personnel It is your obligation to ensure you study and educate yourself on Health & Safety matters. Agree with your employer on a training plan. Find out from the Department of Labour when their exams for potential registered health & safety officers are held. Ensure you understand the scope of the test and are properly prepared for it. For more information on the registration of Health & Safety Officers, please contact Teboho Mafooa, Department of Labour, phone: Recommendation: Have more than one person trained on OSH Factories often appoint only one person solely responsible for all occupational safety & health matters. This can be counterproductive, because when this person leaves there is nobody to continue with the care of the factory s safety & health. Apart from having an appointed OSH Officer, it is advisable to train other people at the factory in OSH issues, too, such as compliance and production managers, technicians and supervisors. Also consider training people from the human resource pool. An OSH Officer s Profile A good HSO is a skilled, proactive and creative person. Below are a number of key tasks and responsibilities that a HSO would need to take care of and implement: writing internal health and safety policies/ strategies and operational procedures; undertaking risk assessments; identifying potential hazards; determining ways of reducing risks; planning safe working practices in a systematic manner and making necessary changes; making regular site inspections; providing health and safety training courses for employees and managers; organising and attending health and safety committee meetings; safely handling of chemical and hazardous substances; ensuring that equipment is installed correctly/safely; investigating/recording incidents, accidents, complaints and cases of ill health; making recommendations following accidents/incidents; keeping up to date and ensuring compliance with current health and safety legislation. 7

8 FIRE SAFETY How well prepared are you? The second half of 2012 saw devastating fires in garment factories in Pakistan and Bangladesh that took the lives of hundreds of workers. Many of us read articles on the Internet that shed light on the causes of these fires and revealed heart-breaking stories about the suffering of the victims trapped in their factories, knowing that they would not make it out of the building alive. These stories touched us deeply, and we may have asked ourselves: What do our emergency preparedness measures look like? Would they be sufficient and effective enough to deal with a major fire outbreak in the workplace? In the months to come, BWL will re-emphasize the need to have adequate fire safety procedures and installations in place. Our Enterprise Advisors will make it a priority to discuss fire safety measures with PICC members by using educational material such as Best Practice Sheets, Fire Safety Checklists and an animated awareness video. In addition, BWL will develop fire safety awareness posters and launch training on fire safety and risk assessment. And in cooperation with our partners, Better Work Lesotho will host 2 upcoming OSH events with a focus on fire safety issues. We welcome stakeholders ideas on what else could be done to raise awareness on the importance of fire safety and improve preparedness in this respect. For more information on emergency preparedness, and fire safety in particular, please contact our Enterprise Adviser: Lesiamo Molapo ( Molapo@betterwork.org; Phone: ). 8

9 Training Q

10 OSH Training for union leaders With health and safety being a primary concern in the garment industry, it came as no surprise when Better Work Lesotho was approached by the 5 sectoral unions (FAWU, LECAWU, UNITE, NUTEX, Lentsoe Le Sechaba) with a request to run an OSH training course for their leaders. This opportunity came and the interactive two-day training course was done on the 15-16th November 2012 at the offices of Better Work Lesotho, with 14 union representatives attending. The union leaders proved to be highly interested in the topics and discussed them passionately. Topics from the OSH training curriculum included fire, electrical and chemical safety, hygiene and welfare, PPE, machine guards, safety committees and correct lifting. From the feedback it was evident that all partaking in the training had acquired valuable insight and knowledge into the world of health and safety. Participants were also given the opportunity to practice their trainer skills. This is important as many union officials in turn need to train members at plant level. One such exercise involved correct lifting techniques where participants practiced correct lifting themselves and then had to train the group. See photos below. Ntate Lesiamo Molapo conducting a module on electrical safety at the Union OSH Training. For more information on Better Work Lesotho OSH training, please contact Lesiamo Molapo, Enterprise Adviser ( Molapo@betterwork.org; phone: ). 10

11 Ms MANAGEMENT SYSTEMS MODULE 1 One of the buzz words in the context of improving labour compliance is management systems. The reason for this term becoming so popular is that many of the non-compliance findings at factories could be avoided if better systems were in place. Establishing a system, such as an emergency preparedness plan, may sound easy, but in reality requires planning, organisation and management. To facilitate factories towards sounder systems that can in turn help improving their labour issues and health and safety, Better Work Lesotho has set out to establish a training course focusing solely on management systems. Management systems (or systems) are present in every facet of business, be it security, quality, environment, personnel, transport, or health and safety. With this in mind, our new course provides participants with a broad but sufficient background on what systems are, why we need them and how they function. This course is divided into 4 modules, each about a half day long. The first module, MS (1) Systems, was launched as a pilot training on 13 November 2012 and was attended by 15 participants from 5 factories. This module focuses mainly on the concept of systems and raises awareness of the presence of systems in factories. Upon completion of the training, a post knowledge test was conducted and results clearly indicated an increase in the awareness and understanding of systems at the factories. Feedback from the participants showed a great interest in the topic, with eager anticipation for the upcoming modules. In 2013, Better Work Lesotho is planning on repeating Module 1 for the rest of the industry and will also run Modules 2, 3 and 4, which are under preparation. These upcoming modules extend the concept of management systems by looking at the required components of management systems, deficiencies, purpose; and equipping participants with the knowledge on how management systems work. Upon completion of Module 4 learners will be able to set up basic health & safety management systems at their factories and assist management in their implementation and maintenance. Formosa: Thulo Mapmathe, John-Peter Adoro, Ryan Chen, Nthako Mofeli, Mamokete George, Hloekile Ntsoeneng, Matina Ntsohi CGM Group: Tom Tlebere, Masebinane Malamane, Joshua Daniel Bu (Nien Hsing International), Derek Liu (Global Garments), Chris Chang (Nien Hsing Taipei) 11

12 Better Work Lesotho is funded by: US Department of Labor The Better Work Global Programme is supported by: Australian Government Levi Strauss Foundation Netherlands Ministry of Foreign Affairs State Secretariat for Economic Affairs, Switzerland (SECO) United States Council Foundation, Inc. (funds provided by Gap Inc., Nike and Wal-Mart) Participating Suppliers C & Y Garments CGM Industrial Eclat Evergood Everunison Formosa Textile Global Garments Hippo Knitting Humin Jeanswear J & S Fashion Jonsson Manufacturing Kopano Lesotho Precious Garments Maseru E-Textiles Mauri Garments Nien Hsing International Presitex Shinning Century Springfield Manufacturers Sun Textiles Superknitting Tai Yuan Garments TZICC Participating Buyers Jones Apparel Levi Strauss & Co. Philip van Heusen SEARS The Children s Place The Gap Inc. Walmart This newsletter is published by Better Work Lesotho, a joint programme between the International Labour Organization (ILO) and International Finance Corporation (IFC). The opinions expressed do not necessarily reflect the official views of the ILO, nor those of IFC. 12