Sustainability Report 2007

A three-hour journey from Shanghai conveys Electrolux auditors to a vacuum cleaner motor assembly plant for an announced inspection of the facilities. The factory with its 400 employees, will take a full day to inspect. The plant is a key supplier for Electrolux Floorcare and a priority for the purchasing department.
 
Auditors note employee ages, labor contracts, payroll documentation and time cards. They keep their eyes open for workers who look under-age, tired, have injuries or who work under potentially hazardous conditions. They also investigate whether potentially dangerous materials are used in production. At this plant, no chemicals are in evidence and the youngest worker was born in 1991.

By close of day, factory management will receive a copy of our Corrective Action Plan, which includes recommendations on how to remedy the 17 findings (8 major and 9 minor non-compliances). These include issues such as working hours, fire safety, compensation and proper documentation for juvenile workers (over 16 years). The supplier is requested to respond within seven days, with an indication of how they intend to address non-compliances and when.  Findings are reported to the responsible purchaser and the plant will be revisited within three months to monitor progress. 

An integral part of the visits, moreover, is our consultative role – aimed at increasing transparency, engagement and understanding. “It’s not just about policing; we strive to help the supplier continually improve,” Andrew Feng, CSR Audit Manager, summarizes.
 
A description of how Electrolux monitors corrective action:

1.  Two auditors entered the six story factory facility, employing 400 workers. The day-long announced inspection was a first for the supplier.

2. The 30-minute opening meeting with the factory’s general and sales managers and security officer. We outline the purpose of the visit, why it is important to Electrolux and underline how good performance can improve their business opportunities.

3.  A tour of the production area verifies whether employees work in an obstruction-free environment. We make recommendations on how to improve working conditions.

4. Selected randomly from the payroll list and work-floor, eight employees are individually interviewed in a secluded area by our auditors.

5. This inspection focused on the safety issues.

6.   Auditors check that fire extinguishers are functioning and are easily accessible to workers.

7.   Health and safety represents 42% of our audit findings in China. This audit score on health and safety was quite good. A worker dons proper noise protection equipment and gloves.

Audit findings in China