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Findings from our investigations regarding "Myanmar Guotai Huasheng Glory Fashion"

Unilateral Change in Payment Method: During the investigation, it was found that the factory had informed the workers in advance about the transition to the ATM card payment system in October 2023.

The investigation revealed that the banking system did not harm the workers and obtained the consent of the factory workers.
Regarding withdrawal issues, a few workers faced problems as their ATM cards were blocked due to incorrect attempts. But the problem was quickly resolved as the workers visited the bank the next day to reopen their accounts.

ICS audit was conducted on May 9-11, 2024 by SGS
Score 97%, Grade B
7.4 The payment method was in accordance with local law. Workers were paid in cash and in the banking system on the fifth day of next month.

Timing and Accessibility of Salary Withdrawals: The investigation noted that factory workers are allowed to withdraw their salary in advance from the 2nd to the 4th of the month.
Clearing necessary information about YOMA Bank Payroll; Step-by-step withdrawal process for employees with the help of Roma Bank staff including HR; It has been found that teaching and facilitating smooth transactions.

ICS audit was conducted on May 9-11, 2024 by SGS
Score 97%, Grade B.

7.5 According to local law, the facility payment frequency was in accordance with local law.

Compulsory Return for ID Card: The investigation found that the demand for factory workers to have real ID cards was not solely related to the recent transition to an ATM card system.
Instead, To address the concerns of workers using fake IDs, the factory did not force workers to return to their hometowns, but allowed them to use their days off and vacation benefits as they wished until they got real IDs.

Financial Implications of ID Card Process: According to interviews with workers, workers who want to take leave for the verification card issue say that if they want to take casual or annual leave, the factory does not deduct their wages and does not cut their bonuses.
However, workers without such authorization are entitled to unlimited unpaid leave until their ID cards are issued.

ICS audit was conducted on May 9, 2024 by SGS
Score 97%, Grade B
According to local law, the facility payment frequency were in accordance with local law.
7.23 Only Social Security fees are deducted from the salary.

Managerial Decisions and Worker Experience: Workers queuing in front of the ATM machines can withdraw their salaries from the 2nd to the 4th of every month on a rotating basis according to the department. Each worker takes about 3 minutes to complete the process.
The number of workers in the queue at any time is not more than 10 workers. Also, in some cases, workers from each line of work seek assistance from line staff to facilitate cash withdrawals.

Production Rate and Working Conditions: After the investigation, the factory laid off the workers; They were found not to be involved in serious human rights violations such as access to drinking water and toilets.
The factory does not require workers to produce beyond their capacity and can meet their basic wages regardless of the amount of production.

ICS audit was conducted on May 9, 2024 by SGS
Score 97%, Grade B
2.4 Based on worker interview, it was noted that workers were guaranteed freedom of movement during working hours.
2.5 The workers could leave the factory freely at the end of working shifts, which was confirmed by interviews with workers.

Supervisory Behavior and Communication: The investigation found that supervisors were demanding production by the hour with loud voices from line workers, but refrained from verbal abuse.

ICS audit was conducted on May 9, 2024 by SGS
Score 97%, Grade B
3.1 Based on onsite observation, documents review, workers and management interview, no discrimination was identified in the factory during the audit.

Unauthorized Searches and Discrimination: Upon investigation, it was discovered that the security checks on workers' belongings aim to prevent snacks from being brought into the workplace, potentially causing damage to the products. This checking is deemed a standard procedure to maintain cleanliness in the workplace. Based on workers' interviews, workers confirmed that the facility's security practices are non abusive. No negative evidence was found during the audit.

ICS audit was conducted on May 9, 2024 by SGS
Score 97%, Grade B
4.2 Based on the disciplinary rules and regulations stated in the employment contract, disciplinary measures were appropriate to meet the local law. And no fine and physical coercion occurred according to the worker interview.
4.6 Based on workers' interviews, workers confirmed that the facility's security practices are non abusive.

Union Representation: based on the latest audit performed based on ICS standard on May 10, 2023
5.1 Based on workers' interviews, they were aware of the right for collective bargaining of remuneration and work conditions.
5.2 Workers are free to form or join independent trade unions.

Other sites mentioned in the articles
The two sites referenced in the articles you mentioned do not belong to our supply chain, and we have no business relations with them...

Furthermore, in light of the current political and security situation in Myanmar, the company has decided to cease its sourcing operations in the country. We continue to monitor developments closely, and this decision may be reconsidered should conditions improve. The exit from Myanmar should be effective at the end of Q2 2025...

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