STANDARDS OF MANUFACTURING PRACTICES

Business partners must create conditions that, no workers pay for their job, workers retain control of their travel documents and have full freedom of movement and all workers must be informed pf the basic terms of their employment leaving home.

Employers shall adopt and adhere to rules and conditions of employment that respect workers and, at a minimum, safeguard their rights under national and international labor and social security laws and regulations.

There shall be no use of forced labor, including prison labor, indentured labor, bonded labor or other forms of forced labor.

No person shall be employed under the age of 15 or under the age for completion of compulsory education, whichever is higher.

No person shall be subject to any discrimination in employment, including hiring, compensation, advanced, discipline termination or retirement, on the basis of gender, race, religion, age, disability, sexual orientation, nationality, political opinion, social group or ethnic origin.

Supplier acknowledges that every employee, male or female, has a right to compensation for a regular work week that sufficient to meet employees’ basic needs and provide some discretionary income. Supplier’s employees are timely paid at least the minimum wage required by country law, or prevailing wage, whichever is higher, and provided legally mandated benefits, including holidays and leaves, and statutory severance when employment ends. There are no disciplinary deductions from pay. When compensation does not meet the employees’ basic needs and provide some discretionary income, supplier shall develop, communicate and implement strategies to progressively realize compensation that does.

Suppliers shall not require workers to work more than the regular and overtime hours allowed by the law of the country where workers are employed. The regular work week shall not exceed 48 hours. Suppliers shall allow workers at least 24 consecutive hours of rest in very seven-day period. All overtime work shall be consensual. Suppliers shall not request overtime on a regular basis and shall compensate all overtime work at a premium rate. Other than in extraordinary circumstances, the sum of regular and overtime hours in a week shall not exceed 60 hours.

Business partners must recognize and respect the right of employees to join and organized associations of their own choosing and to bargain collectively. Business partners must develop and fully implement mechanisms for resolving industrial disputes, including employee grievances, and ensure effective communication with employees and their representative.

Suppliers must treat employees’ with respect and dignity. No employee may be subjected to any physical, sexual, psychological and verbal harassment or abuse or to fines or penalties as a disciplinary measure.

Business partners must publicize and enforce a non-retaliation policy that permits factory employees to express their concerns about workplace conditions to factory management without fear of retribution or losing their jobs

No authorized Outerstuff employee shall be denied access to any part of the premises, buildings, or rooms of a factory that is being visited for any reason. This will result in the factory being deactivated and no further work will be given.

Employers shall provide a safe and hygienic work environment for workers. Occupational health and safety practices which prevent accidents and injury must be promoted. This includes protection from fire, accidents and toxic substances. Lighting, heating and ventilation systems must be adequate. Employees must have access at all times to sanitary facilities that should be adequate and clean as well as residential facilities that are provided to employees must meet the same standards. Suppliers must have health and safety polices that are clearly communicated to employees.

Business partners must make progressive improvement in environmental performance in their own operations and required the same of their partners, suppliers and subcontractors. This includes: Integrating principles of sustainability into business decisions; responsible use of natural resources; adoption of cleaner production and pollution prevention measures; and designing and developing products, materials and technologies according to the principles of sustainability.

Outerstuff has ZERO TOLERANCE for the following:

  • Prison Labor

    Includes any form of manufacturing, whether ‘illegal’ or ‘unauthorized 'of part of a legitimate work program, conducted within the confines of a prison, or by prisoners who have been sent to the manufacturing site, regardless of whether the prisoners are paid for their work.

  • Slavery and Trafficking, Including Forced Labor

    Referring to the recruitment, transportation, transfer, harboring, or receipt of persons, by means of the threat of use force or other forms of coercion, of abduction, of fraud and deception.

  • Child Labor

    Business partners must not employ children who are less than 15 yrs. old, or less than the age for completing compulsory education in the country of manufacture where such age is higher than 15. For Example: any finding of child labor in a newly nominated  factory; and any finding of the presence of child labor in a current approved supplier, where there is evidence that the issue is so embedded or prevalent that it cannot be-remediated to secure the long term future and education of the child laborer.

  • Critical, Life-Threatening HSE Conditions

    A factory building that is structurally unsound and may collapse (either partially or completely) causing serious injury or death. An immediate and serious fire hazard is present, such as a large quantity of flammable chemicals or materials placed on site without any proper control system in place. Any other set of circumstance which may have cause danger or life threat to anyone in the factory premises.

  • Repetitive and Systematic Abuse or Bullying

    The abuse may be sexual, physical or mental in nature, and must form part of the management style of the suppliers, i.e. must be part of the day-to-day management of the factory. For example, physical punishment is used to discipline workers; workers are regularly locked inside the factory and unable to leave; there is widespread sexual harassment of workers. Systemic abuse would not include isolated actions, criminal acts, or one person who abuses power; all such cases can be re-mediated by management.

  • Business Registration

    The company does not hold a valid business registration or license document to legally operate the business.

 

RESPONSIBLE SOURCING

Outerstuff is committed to acting in a socially responsible way and therefore it has created a Responsible Sourcing Program which helps us in the vetting process to select business partners that have workplace standards and business practices consistent with our values and to reject those that do not. New possible suppliers must follow the Outerstuff factory review process for license and non-licensed program which will assist with sourcing decision making:

  • • Outerstuff Factory Vetting Form
  • • Current Audit History Evaluation
  • • Audit Compliance Mapping
  • • Country Risk Assessment
  • • Industry Collaboration
  • • Final Recommendations – Sourcing & Production Managers

 

INDUSTRY AND MULTI-STAKEHOLDER COLLABORATION

Outerstuff participates in various multi-stake holder programs and activities such as:

Fair Labor Association (FLA)

Outerstuff has been an affiliate of the Fair Labor Association (FLA) since 2008 starting as a Category C company.

Throughout the years Outerstuff has progressively strengthened its commitment to the FLA program first, by opening its collegiate supply chain to FLA assessments by transitioning to a Category B status in 2010, and finally by transitioning to a Participating Company in 2012.

Each year Outerstuff’s supply chain is subjected to the FLA’s rigorous Sustainable Compliance Initiative (SCI) process and public reporting.

The Fair Labor Association (FLA) is an independent nonprofit organization dedicated to improving the lives of factory workers and providing independent monitoring of factory conditions. The mission of the Fair Labor Association is to combine the efforts of business, civil society organizations, and colleges and universities to promote and protect workers’ rights and to improve working conditions globally through adherence to international standards. Read more about the FLA.

Fair Labor Association - Wage Data Tool Pilot

Outerstuff’s suppliers participated in the 2016 Wage Data tool, it currently continues to participate using the new and improved wage data collection tool

The Fair Labor Association (FLA) and its stakeholders — labor rights organizations, universities, buyers, and suppliers — are addressing the issue of wages in global supply chains. The FLA’s Fair Compensation strategy approved in 2015 is designed to generate measurable and sustainable progress towards compensation that “meets the worker’s basic needs and provides some discretionary income.”

This strategy includes the publication in 2016 and 2017 of independent research on how buyers, suppliers, and unions make progress towards fair compensation. This learning phase leads into planning and implementation of fair compensation strategies by FLA-affiliate companies in 2017 and beyond. The strategy begins with an analysis of compensation data by the FLA and its affiliates to determine how much workers in supply chains are earning.

All FLA-affiliated Participating Companies and Participating Suppliers are required to begin piloting the collection of compensation data in 2016, and are strongly encouraged to use the tools provided by the FLA.2 Collecting compensation data for analysis will help companies working toward fair compensation to:

  1. 1. Analyze more uniformly the elements of compensation systems at the factory and country levels
  2. 2. Put supplier compensation levels in the context of relevant benchmarks (to be provided by the FLA), and identify high-risk areas to better focus fair compensation planning

American Apparel & Footwear Association (AAFA)

Outerstuff participates in the American Apparel & Footwear Association (AAFA)  as a board member of the Social Responsibility Committee and Product integrity committee.

AAFA stands at the forefront as a leader of positive change for the apparel and footwear industry. With integrity and purpose, AAFA delivers a unified voice on key legislative and regulatory issues. AAFA enables a collaborative forum to promote best practices and innovation. AAFA’s comprehensive work ensures the continued success and growth of the apparel and footwear industry, its suppliers, and its customers.

Americas Group (AG)

Outerstuff is a participating company that supports various Factory Child Care projects in El Salvador.

A multi-stakeholder forum of Brands and labor rights organizations to promote and support globally competitive and social responsibility apparel and footwear industries in the Americas.

Better Work

Outerstuff suppliers in Vietnam participate in the ILO Better Work Program

Better Work – a collaboration between the United Nation’s International Labor Organization (ILO) and the International Finance Corporation (IFC), a member of the World Bank Group – is a comprehensive program bringing together all levels of the garment industry to improve working conditions and respect of labor rights for workers, and boost the competitiveness of apparel businesses.

As a result of their participation with Better Work, factories have steadily improved compliance with ILO core labor standards and national legislation covering compensation, contracts, occupational safety and health and working time. This has significantly improved working conditions and, at the same time enhanced factories’ productivity and profitability.

Bangladesh Accord:

Outertsuff became a signatory of the Bangladesh Accord in April, 2014

The Accord on Fire and Building Safety in Bangladesh (the Accord) was signed on May 15th 2013. It is a five year independent, legally binding agreement between global brands and retailers and trade unions designed to build a safe and healthy Bangladeshi Ready Made Garment (RMG) Industry. In June 2013, an implementation plan was agreed leading to the incorporation of the Bangladesh Accord Foundation in the Netherlands in October 2013.

  • •  The agreement consists of six key components:
  • •  A five year legally binding agreement between brands and trade unions to ensure a safe working environment in the Bangladeshi RMG industry.
  • •  An independent inspection program supported by brands in which workers and trade unions are involved.
  • •  Public disclosure of all factories, inspection reports and corrective action plans (CAP).
  • •  A commitment by signatory brands to ensure sufficient funds are available for remediation and to maintain sourcing relationships.
  • •  Democratically elected health and safety committees in all factories to identify and act on health and safety risks.
  • •  Worker empowerment through an extensive training program, complaints mechanism and right to refuse unsafe work.

2018 Accord on Fire and Building Safety in Bangladesh: May 2018

Outerstuff is a signatory of the Accord 2018

The undersigned parties are committed to the goal of a safe and sustainable Bangladeshi Ready-Made Garment ("RMG") and other related industries1 in which no worker needs to fear fires, building collapses, or other accidents that could be prevented with reasonable health and safety measures.

Better Buying

In 2018 Outerstuff suppliers participated in the Better Buying Q4 2018 Questionnaire.

The Better Buying initiative provides clear, relevant, transparent, and timely information and analysis about good purchasing practices that will change relationships between multinational brands and retailers (buyers), the suppliers responsible for manufacturing their products, and other intermediaries up and down supply chains.

Better Buying is a unique system for suppliers to communicate with their buyers about purchasing practices that are working well and those that need improvement, without risking their business relationship. Created in collaboration with suppliers, our buyer rating system examines seven key buyer purchasing practices that affect a supplier’s ability to adhere to the terms of any contract and operate efficiently while providing a safe work environment and maximizing profitability.

SUPPLY CHAIN RESPONSIBILITY

Forced Labor, Human Trafficking and UK Modern Slavery Act 2015

Outerstuff is fully engaged and manages a very extensive Corporate Social Responsibility Program, including programs designed to combat slavery and human trafficking. Outerstuff and all of its licensors are committed to meet all applicable laws and regulations, in its operations and take Forced Labor, Human Trafficking and slavery seriously. All suppliers are expected prohibiting, slavery and human trafficking. If a supplier fails to comply with such standards and procedures they will be prohibited from manufacturing with Outerstuff.

The following information is to provide information required under the UK Modern Slavery Act of 2015 and the California Transparency in Supply Chains Act of 2010 as it relates to Outerstuff’s business practices.

California Transparency in Supply Chains Act of 2010 Statement SB 657

The Act’s stated intent is “to ensure large retailers and manufacturers provide consumers with information regarding their efforts to eradicate slavery and human trafficking from the supply chains, to educate consumers on how to purchase goods produced by companies that responsibly manage their supply chains, and, thereby, improve the lives of victims of slavery and human trafficking.”

Code of Conduct on Forced Labor – All Outerstuff suppliers agree to follow all of the Outerstuff licensors Standards and Procedures which include but not exclusive to Adidas, Nike and the Fair Labor Association (FLA).

Risk Evaluation-   Outerstuff evaluates and updates its supply chain based on risks assessments performed by its licensors which include but not exclusive to Nike, Adidas and Fair Labor Association.

Auditing – All Outerstuff suppliers go through rigorous monitoring, remediation and verification by our licensors that include but no exclusive to Nike and Adidas. In addition,  our suppliers are selected to participate in the Fair Labor Association (FLA) Sustainable Compliance Initiative (SCI) assessment program.

UK Modern Slavery Act 2015

An Act to make provision about slavery, servitude and forced or compulsory labor and about human trafficking, including provision for the protection of victims; to make provision for an Independent Anti-slavery Commissioner; and for connected purposes. [26th March 2015]

Conflict Minerals

Outerstuff licensors value ethical manufacturing practices and are committed to working with manufacturing partners to follow the framework of the Dodd-Frank wall Street Reform and Consumer Protection Act of 2010 and it expects all of its suppliers to avoid the use of  non-certified 3TG Minerals (Tin, Tantalum Tungsten and Gold) smelters and refineries.

the Dodd-Frank wall Street Reform and Consumer Protection Act of 2010 Section 1502 requires persons to disclose annually whether any conflict minerals that are necessary to the functionality or production of a product of the person, as defined in the provision, originated in the Democratic Republic of the Congo or an adjoining country including: Angola; Burundi; Central African Republic; the Republic of Congo; Rwanda; South Sudan; Tanzania; Uganda; and Zambia. The rule applies to all products manufactured on or after January 31, 2013, and according to the legislation, columbite-tantalite, cassiterite, wolframite and gold ore – which are refined into tantalum, tungsten, and gold, are considered Conflict Minerals.

Outerstuff may require vendor to provide due diligence documentation relating to Conflict Minerals, including formal certifications and policies.

Uzbekistan and Turkmenistan Cotton

Outerstuff Prohibits all global suppliers the use of cotton or textiles sourced from any country such as Uzbekistan and Turkmenistan that has documented history of state-order and forced labor. As part of our Responsible Sourcing practices global suppliers are required to sign a commitment letter, where suppliers are required to not source from textile mills which use cotton from Uzbekistan and Turkmenistan. Any violation of this expectation will result in the cancellation of orders and/or termination of contractual relationships with that supplier.

Cotton form Uzbekistan is produced un a state-order and forced labor system. If Uzbek farmers fail to meet the government cotton production quotas, they risk their lease to farm the land, criminal charges and physical abuse. The Uzbek Government also forcibly mobilizes 16-17 year old students, University students, teachers, health-care and other public- sector workers, private-sector workers and prisoners to harvest the cotton each fall.

PRODUCT INTEGRITY

Outerstuff participates in various multi-stake holder programs and activities such as:

Product Integrity

Outerstuff ensures that all of its products are safe for workers, consumers and the environment. As part of our Responsible Sourcing Program, Outerstuff follows the Federal Youth Consumer Product Safety Requirements.

As a leading youth manufacturer we are committed to the safety of our customers. We manager and verify a detailed product safety program through our global supply chain that encompass a strict testing protocol for both national and global sales:

  •   1) Outerstuff follows all US Federal Youth Consumer Product Safety – CPSCIA Policy
  •   2) Outerstuff follows all global testing requirements for example: REACH, GB/China

 

California Proposition 65

Proposition 65, the Safe Drinking Water and Toxic Enforcement Act of 1986, was intended by its authors to protect California citizens and the State's drinking water sources from chemicals known to cause cancer, birth defects or other reproductive harm, and to inform citizens about exposures to such chemicals. Businesses and Manufacturers must provide Proposition 65 warnings if any listed chemical’s exposures greater than the safe harbor level. Suppliers must inform CSC product safety if any of the listed chemicals are intentionally added to any CSC product, or if a listed chemical is contaminant in the process that exceed safe harbor level. Proposition 65 list can be found at http://www.oehha.ca.gov/prop65/prop65_list/Newlist.html

Registration, Evaluation, Authorization and Restriction of Chemicals (REACH)

REACH Regulation (EC) No 1907/2006 of the European Parliament and European Council is the European Community Regulation on chemicals and their safe use. REACH entered into force on June 1, 2007 and concerns the Registration, Evaluation, Authorization and Restriction of Chemical substances. REACH Annex XVII which came into force on June 1, 2009 contains restrictions for marketing and use of certain dangerous substances, mixtures and articles adopted since 1976 in Directive 76/769/EEC. Suppliers may have legal obligations related to the REACH regulations and the REACH Candidate List of Substances of Very High Concern (SVHC). Suppliers must continuously monitor updates to REACH, Annex XVII and Candidate List of Substances of Very High Concern (SVHC) and ensure materials and products supplied to CSC comply with all REACH requirements.

REACH information may be found at: https://echa.europa.eu/home

Candidate list substances can be found at http://echa.europa.eu/web/guest/candidate-list-table

Pre-candidate substances are found at http://echa.europa.eu/web/guest/registry-of-current-svhc-intentions