Performance Evaluation of Compliance of
GoldTex Garments Limited
GoldTex garments started its journey in 2007, Dhaka Export Processing Zone at savar. It is one of the major garments manufacturing organization in Bangladesh.
This organization increasingly reducing its rejection and rework rate in-process and final garments in order to ensure product quality and delivery time as per buyer requirement and increase profitability. GoldTex will ensure sufficient training and suitable work to increase productivity and skills of the employee.
Total area of GoldTex Garments is 1, 85,538 square feet. Its production capacity is around 30, 00,000 per annum, and number of employees at least 2500. The report will give a clear idea about compliance in Garments Sector. Study objective is to gather comprehensive knowledge on overall compliance practices maintained by GoldTex Garments Ltd. Report contains the location, history, objective, goals, mission, vision, Organogram of GoldTex Garments Ltd.
In my report I tried to cover a short profile of Golden Crown group and major customers of GoldTex garments. It also includes responsibilities of a Compliance officer, my activity and the problems I faced and some recommendation.
In addition, I evaluate the performance of compliance department according to several audits. Apart from this here I explain all twelve issues of compliance and also covered marketing mix (4p’s) of GoldTex Garments. In the analysis part I tried to show the after and before effect of ensuring compliance in terms of Order, export and C-TPAT By taking the Rana Plaza and Tazrin incident 2012-12013 as a check point.
Finally I recommend and mentioned the findings provided by different buyers.
- My first objective is to work on the Marketing Mix (Product, price, place and promotion) of GoldeTex Garments Ltd.
- To find out that, the perception of customer differ towards factory code of conduct.
- To find out that, the perception of customer differ towards working environment.
- To find out that, the perception of customer differ towards workers safety issue.
- Analyze compliance issues such as code of conduct, working environment and workers safety to identify the perception of customer.
- Analyze some relationship between customer and compliance issues,
- Compliance practices in GoldTex Garments.
Garments at a Glance
Garment means dress that is use to wear. Garments may be oven, sweater or knitwear. In garments factory it is produced at a large scale.
History of garments
By forming trade unions, In the 1950s, labors in the Western World became highly organized; this and other changes provided workers greater rights including higher pay; which resulted in higher cost of production. Due to the higher price Retailers started searching for places where they can produce their product at a cheaper price. Developing economies like Hong Kong, Taiwan and South Korea presented themselves as good destinations for relocations because they had open economic policies and had non-unionized and highly disciplined labor force that could produce high quality products at much cheaper costs.
Multi Fiber Agreement (MFA) was made to control the level of imported RMG products from developing countries into developed countries, in 1974. The MFA agreement imposed an export rate 6 percent increase every year from a developing country to a developed country. It also allowed developed countries to impose quotas on countries that exported at a higher rate than the mutual agreements. In the face of such restrictions, producers started searching for countries that were outside the umbrella of quotas and had cheap labor. This is when Bangladesh started receiving investment in the RMG sector.
RMG in Bangladesh
In the early 1980s, some Bangladeshis received free training from Korean Daewoo Company. After these workers came back to Bangladesh, many of them broke ties with the factory they were working for and started their own factories. The garment industry of Bangladesh has been the key export division and a main source of foreign exchange for the last 25 years. At present, the country generates about $15 billion worth of products each year by exporting garment. The industry provides employment to about 4 million workers of whom 85% are women. Two non-market elements have performed a vital function in confirming the garment industry’s continual success; these elements are quotas under Multi- Fiber
Arrangement (MFA) in the North American market and special market entry to European markets. In this time, the USA abolished the quota system of Bangladesh. But day by day we are increasing the export readymade garments items through maintain high quality of product. The whole procedure is strongly related with the trend of relocation of production.
The global economy is now controlled by the transfer of production where firms of developed countries swing their attention to developing countries. Reducing costs and increasing output are the main causes for this disposition. They have discovered that the simplest way to undercharge is to move production to a country where labor charge and production costs are lower. The transfer of production to
Third World has helped the expansion of economy of these nations and also speeds up the economy of the developed nations.
The minimum requirements needed to build a new Garments factory are given below:
- Trade License
- Bank Account
- Company registration by Joint Stock Company
- Project and working capital loan sanction from bank
- TIN & VAT certificate
- Project permission letter from board of investment govt. of Bangladesh
- Factory floor installation
- Fire license
- General insurance
- Factory layout plan
- Environment certificate
- BKMEA/ BGMEA membership certificate
- Labor certificate
- Pass book for EPZ and Chittagong customs
- Chamber of Commerce certificate
- Electricity, gas WASA, boiler connection in the factory building
An overview of GoldTex Garments
Golden Crown Enterprises International Ltd is the mother company of the GoldTex Garments Ltd. Golden Crown is a professional manufacturer of caps and hats with more than thirty years of experience in the field. Golden Crown was established in 1976, and has grown enormously in the past thirty five years. It is a Hong Kong based company with 100% self-owned factory in China and Bangladesh.
Golden Crown Enterprises International Limited is operating his business in Dhaka Export Processing Zone at Savar. It has consisted of seven units. They are:
- GoldTex Garments Ltd,
- South China Bleaching and Dying Factory,
- GoldTex Ltd. (Weaving Division),
- South China Washing Plant,
- Actor Sporting Ltd. (Garments Division),
- Actor Sporting Ltd. (Head Ware Division),
- Global Attire Ltd.
GoldTex Garments Limited was established in 2007 in DEPZ of Savar, Dhaka for meeting the demand of good quality garments worldwide. The unit started operations in 2007 and its production capacity fulfilled the expectations of the management and proved as a successful venture.
At early years GoldTex garments had to pass very difficult time. It still exists only for its honesty, integrity, moral scruples and for its business ethics. And for that reason now this organization is in a successful and stable situation in the subsequent years.
This organization is also adapting some important policies like getting official approval of ISO Quality Standard practices, ensuring total compliance of various Code of Conduct requirements of prestigious buyers across the world, prioritizing the need for creation of ideal work conditions for the workers and ensuring proper health care & safety for them.
GoldTex garments never miss to meet future challenges. This organization always tries to give its best to achieve professional competence and reliability.
It always tries to give something better than its customer’s expectation. For this reason it’s not only treated as a trusted supplier of readymade garments but also as a caring partner toward all its buyers and customers.
History and Background of the GoldTex Garments Ltd.
GoldTex Garment Limited an offspring company of M/S Golden Crown Head– Wears Factory Ltd, Hong Kong, has gone into commercial production in the year 2007 in Dhaka Export Processing Zone (DEPZ) & has been meeting the growing demand of quality Trouser, Shorts, Skirts, Shirts, Blouse etc. of customized designs. The state-of-the-art JUKI & BROTHER brand machineries & highly professional local & expatriate technicians have developed an in-built means for optimum for productivity with superior quality.
Top Policy Makers:
Mr. Ngan Hung Tak (President), a national of Great Britain has over 38 Years of proven Senior Management experience. He is the Founder of
“M/S Golden Crown Head-Wears Factory Ltd.”, Hong Kong. The company graded as number one Cap Exporter of China in 80’s. His miraculous achievements speak about him.
Mr. Calvin Ngan (Managing Director), a national of Great Britain is highly qualified and widely recognized rising entrepreneur.
Aga Mohammad Shafiul Azam (General Manager), a national of Bangladesh has over 16 Years of proven Senior Management experience and highly qualified and the youngest general manager of DEPZ.
Corporate Headquarter: M/S Golden Crown Enterprises International Ltd. 4th Floor, Winner Building, Block C & D 36, Man Yue Street, Ma Tau Wei Road Hung Hom, Kowloon, Hong Kong.
Bangladesh Office: Goldtex Garment Limited. Plot No. 98-100 Dhaka Export Processing Zone, Ganakbari, Savar, Dhaka – 1349.
Products Customer, Supplier, and Machineries
- of Sewing Lines: 15 Nos.
- of Employees: 2350
- Total Floor Area: 185538 square feet
- Major Product: Trousers/ Shorts/ Skirts/ Shirts/ Blouses etc.
- Production lead time: 60-90days.
- Production per year: 3,000,000 pcs.
- Annual Volume: USD 30,000,000.00
Major customers: Hagger, M&S, Perry Ellis, PVH, Polo Ralph Lauren,
Jos-A-Bank, Tom Tailor, BHS, Lands End.
Fabric sourcing (Local): South China Bleaching and Dying Factory Ltd, EOS Textile, Shasha Denim, Hyopshin Bangladesh Ltd.
Fabric Sourcing (Import): China, India, Pakistan, Taiwan, etc.
Fabric Inspection System: 4 point system
Garments Inspection System: AQL 2.5
(a) Sewing: Basic, Double Needle, Over Lock, Barteck, Kansai special, Button Hole, Eyelet Button Hole, Button stitch, Pocket welting, Hemming, Flat Lock, Feed of the arm, Top stitch, Velcro Attach, Blind Stitch.
(b) Cutting: Fusing Machine, Band Knife, Cutter Machine, Lay Cutter Machine.
** Auto Spreading: 6 Tables and 2 sets Cutter machine (Lectra -MH). Cutter Machine
** Cutting Table (Manual): 5 Nos.
(c) Finishing: Vacuum Iron, Trousers Finisher, Thread Sucking,
Cartoon Binding, Needle Detector, Button Pull Test, Auto Tag gun, Metal Detector, Trimming Machine.
** Wrinkle Free Process: Pressing Machine (Topper- 17 sets & Legger-12 sets), Curing Oven (Nagi Shing -1 set, Sussman-1 set), Two (2) Cooling Room.
(d) Fabric Inspection Machine: Shiaw Tai Tong (Two Sets)
(e) Computer Pattern & Marking Software Name: Lectra
Trade Term: FOB.
- L/C Requirements: Irrevocable L/C at sight.
- FOB Price Range: USD 7 to 12 / pc.
- Bank Details: 1) the Hong Kong and Shanghai Banking, Corporation Limited. SWIFT: HSBCBDDH A/C # 050-000116-096
Other sister Concern:
**South China Bleaching and Dying Factory,
** Goldtex Ltd. (Weaving Division),
**South China Washing Plant,
**Actor Sporting Ltd. (Garments Division)
** Actor Sporting Ltd. (Head Ware Division)
** Global Attire Ltd.
- Goldtex Garments Ltd maintains several departments as follows:
- The Human Resources Department (HRD)
- Marketing Department
- Production Department
- Commercial/Shipping Department
- Accounts Department
SWOT analysis of GoldTex Garments Ltd.
A SWOT analysis is overall evaluation of the company’s Strength, Weakness, Opportunities and Threat. Strength and Weakness are the internal values creating factors such as assets, skills or resources etc. And Opportunities and Threat are external values creating factors a company unable to control. The SWOT analysis of GoldTex Garments Limited is given below
- Own Land: Factories of GoldTex Garments Limited are established in its own land.
- Effective Manpower: Factories are well equipped with skilled, expertise and productive manpower. They are doing their level best to deliver timely shipment and exporting 100% quality garments.
- Outsourcing: No need to outsource fabric, dying, printing, embroidery, and washing plant.
- Innovative product line: Product lines are producing a unique & innovative garment which is a very good sign for the industry.
- Proper Management: Employees of GoldTex Garments Limited manages all the paper work quite nicely; supervises the production from start to end and helps to ship the good s as per the requirement of buyers.
- Sample delivery: They delayed to deliver the sample.
- Lack of modern and automated equipment: They don’t have modern equipment in all section only cutting section they have modern and automated equipment,
- Subordinates absence in policy making: The subordinates do not take any decision or take part in policy making in meeting. The decision always comes from the top management which is de motivating.
- Share Building: They have building in their own land but they share this building with their sister concern South china dying and bleaching Ltd.
- Diversification: GoldTex Garments Limited can expand their business by establishing the yarn, woven & knitting factories. It will help them to minimize the risk.
- Hiring dynamic & fresh Graduates: GoldTex Garments Limited can hire dynamic, young & fresh Graduates who can generate innovative ideas & can lead to greater profit.
- Attending Trade Fairs: GoldTex Garments Limited can take part in different trade & textile fair to get public attention and can get new ideas related with today’s business.
- Absence of Spinning Plant: Most of the big Garments industries who are wellestablished have their own Spinning Plant. As a result they can sell their product more cheaply but GoldTex Garments Limited doesn’t have any Spinning Plant. For that reason their cost of production is high.
- Competitors’ smart move: Competitor industries are constantly offering innovative and substitute a product which is a big threat for this industry.
- Trade barriers: Increased trade barriers and quota system withdrawals are the major threats such as cancelation of GSP facility.
Social responsibility and Working conditions are of fundamental importance to successful business strategy of GoldTex Garments Ltd. Workers are the most important factor in Their business and they have to meet and keep their commitment towards their workers by complying with all local laws and regulations in all locations where business is conducted. They have to abide by the statutory and regulatory requirements in order to contribute positively towards country and workers through following coordinated efforts: –
- They condemn Child Labor.
- They condemn bonded labor / Forced Labor.
- Health and Safety also Cooperative working relationship among employees and employer.
- Encourage Freedom of association and employees participation at all level.
- They condemn Discrimination on any ground.
- Ensuring applicable requirements of Laws & Workplace regulations.
- They are strongly maintained Working & OT hours within limit of country laws.
- They provide all the Compensations & benefits, allowances to their workers as defined in local laws/rules.
- Strongly Prohibition of Harassment or Abuse.
- Environment: Their factory and working environment is more Hygiene and safe because their factory is housekeeping tidier; Toilets are very clean with tiles. Drinking water is available. Sufficient cleaners and sweepers are provided for cleaning.
- Custom compliance: They are maintaining as per complies with all applicable custom laws and in particular established and complies with laws regarding legal transshipments.
- Security: They have strong security policy and Group such as Security guards and CCTV system will be established within next 45 days for 24 hours only strong surveillance at all access points to increase deterrence of criminal act. Visitors In-Out every record maintained with register and VISITOR carry out the company visitor card. They also provided with hand metal detector.
According to BEPZA Instruction-1, 1989 GoldTex Garments does not employ any child labor in any of its departments and also does not support the use of child labor in any of its supplier. HR department ensures that the following documents are maintained in all the personal files of staff and workers whether directly employed or indirectly.
- Copy of education Certificate or,
- Copy of Birth Certificate or,
- Copy of national ID card or,
- Copy of Doctor’s Medical Examination Certificate.
According to BEPZA Instruction-1, 1989 GoldTex Garments does not use involuntary or forced labor. They prohibit all relevant individuals from forced employees in any way or unnecessarily limiting employee’s freedom of movement.
Company does not require employee’s to submit originals of documents at the time of employment or during the period of his employment with the company. Maintains employment application and service contract, to include statement applicants are seeking employment voluntarily and are not under threat or any penalty and to be signed by each applicant. Application and service contract copies are maintained in the employee’s personal file.
Issues compensation directly to worker as mentioned in their contract, company makes sure that the correct payment is paid to the workers as agreed.
- At the time of hiring HR Officer, HR & Compliance Department Heads ensures that the employee signs no bond as a token for continued employment.
- During the time of employee’s interview, the potential candidate is briefed about the fact that he/she is under no compulsion to join the company and similarly he/she is free to disassociate with company as per his/her own free will at any given time but under compliance with the rules as agreed in the appointment letter.
- In case where any employee decides to leave the company, Compliance Executive asks about the reason of leaving in order to make sure that he/she is not leaving under unlawful compulsion or threat.
- HR & Compliance Executives and all departmental heads are responsible for communicating, deploying and monitoring the Practice of effectively prohibiting involuntary or forced labor.
- Suggestion box is placed in the facility, if any employee wants to report any incident he/she can use the suggestion box without mentioning his/her identity, the matter will be investigated and resolved by the Company, after discussing the complaint with General Manager and Country Manager (if needed).
Health and Safety
According to BEPZA Instruction-1, 1989 GoldTex Garments utilizes all available resources to provide a healthy and safe working environment for all its workers and to eliminate all potential hazards that are capable of causing work related accidents. They provide all necessary personal protective equipment’s and implements controls to ensure the safety of the workers and their health.
Compliance ensures through maintenance staff that needle guards, eye guards, pulley guard are properly installed in all the machines. First aid boxes are provided to workers, in case of any injury also makes sure that fire extinguishers are all available and all the employees are well trained to use these. Company keeps fire extinguishers location list in a file, which contains location identification number of fire extinguisher, refilling date and expiry date. Regular fire drills and training are conducted, involving every department or monthly basis. GoldTex Garments Ltd. has professional Medical Consultant or Doctor and Medical Assistant (nurse) to provide First Aid assistance to workers and arrange trainings on emergency first aids and conduct training for firefighting by expert.
Each employee is expected to obey safety rules and to exercise caution in all work activities.
“Sudden happening demanding immediate action/ response” For Interact, some of the emergency conditions may be due to the following:-
- Bomb Blast/threat of Bomb Blast.
- Accidental release/discharge of environmentally hazardous material.
- Industrial accident
- All natural calamities as Earthquake, Tornado, Incessant Rain etc.
In case of emergency due to the above-mentioned conditions, the response of the factory personnel should be as per the following way:
Action of Discoverer:
A person who first detects any of the above mentioned conditions of emergency or any other “unusual” condition which can be assessed as the reason for emergency condition, first inform the area supervisor, informs the security guard, inform the emergency alarm responsible person to be ready for supervisor instruction.
Action of the Supervisor:
On information from the person or worker, supervisor shall inform the General Manager/ Admin Officer/ Compliance Executive/ Security In-charge, Instruct and ensure that alarm goes on, if required. Ensure every one of his area to proceed to the designated emergency assembly points.
Actions of the Admin Manager/ Compliance Officer:
On information from the supervisor, HR, Admin & Compliance staff informs the fire safety officer, inform Fire brigade, assess the situation for the scope of emergency, and coordinate between the supervisors for everyone in the factory to be gathered at the emergency assembly points.
Actions of the fire safety officer:
- On information from the HR & Compliance Manager / Compliance Executives
- or as the alarm goes on, the fire safety officer shall respond as per the emergency along with his team.
- The fire safety officer has a dedicated shelter (Assembly Point) known to everyone in the factory.
- All the personnel are trained, instructed and provided with instructions that on hearing the alarm, they should immediately leave their work, switch off the machine (if working on a machine) and gather at the designated emergency assembly point.
- All the departments are provided with respective evacuation plans. Emergency exits and paths to them are elaborately marked on the evacuation plans.
- In case of any accident, the discoverer informs the area supervisor immediately.
- Supervisor access the situation.
- Casualty is protected from the dangerous area and shifted to a safe place.
- Supervisor informs the fire safety officer. If the accident is major one, supervisor instruct and insure that the emergency alarm goes on.
- First Aid provided to the casualty.If required the team leader arranges for external medical treatment.
Fire Protection Equipment:
- Portable and fixed fire protection equipment is provided for entire factory areas.
- The fire safety officer is responsible for monthly inspection, maintenance and required record-keeping of all portable fire extinguishers and fire trolleys. Any used or damaged extinguisher or trolleys should be reported to the fire safety officer.
Fire Extinguishers (Portable): Properly marked 3 or 5 kg “ABC powder / CO2” fire extinguishers are provided in ample quantity for all the production areas.
Fire Buckets: Properly marked fire buckets are provided to all the main production areas or floor staircase.
The Safety & Health rule requires emergency lighting within facilities at the following areas: Emergency lighting is installed in areas where exits would be hazardous during a power failure such as stairs and main departments.
- Exit Signs are provided in specific locations in building to designate the means of exits from the building.
- Installed at all required exit doorways and where necessary to indicate clearly the direction of exits
- Illuminated and also in local language.
Freedom of association
According to BEPZA Instruction-1, 1989 GoldTex Garments recognize and respects the right of employees to exercise their lawful rights of free association and collective bargaining. They do not discriminate against employees who form or participate in lawful association. Forms of discrimination include but are not limited to:
- Wage penalties
Workers Representation and Welfare Committee (WRWC) has been formed in GoldTex Garments Ltd. members of committee were elected through election took place, where nominated names were taken and workers voted in favor of the nominee.
According to BEPZA Instruction-1, 1989 GoldTex Garments has an equal opportunity employer and believes in equal opportunity for all based on merit and ability to carry out the given responsibilities. They believe in equal pay for similar jobs and provision of equal opportunity to all employees to enable them to grow with the company. They do not discriminate against anyone when hiring, promoting, paying and selecting people for training, at the time of termination of employment or retirement on the basis of religion, race, national origin, disability, gender, any association or political affiliation.
In cases where the potential candidate is disabling but his/her disability cannot affect the nature of job for which he/she is seeking employment, the company does not discourage these employees and provide them equal opportunity to seek employment on merit.
Company ensures that in cases, where for the same type of job, male and female employees both are employed, they are hired on equal salary structure and company benefits and without any discrimination.
Reporting on Discriminatory Behavior:
- In cases where an employee feels that he/she is treated with discriminatory behavior, he/she is encouraged to report such events to the authority.
- Employer investigates the event or the employee’s complaint.
- Where it is found that a severe incident of discrimination has taken place, Company records his observations and forward to Country Manager or General Manager, who decides due action.
- Based on the objective evidences available and from the feedback of other worker as well as on the past discriminatory behavior, General Manager may decide the following:
o Terminate the worker
o Demote him / her.
o Retain him / her with last warning.
- Results of investigation and actions decided will be filed in the personal file of particular employee.
- Suggestion box is placed in the facility, if any employee wants to report any incident he/she can use the facility without mentioning his/her identity, the matter will be investigated and resolved by the Company, after discussing the complaint with Head of the Factory.
- A grievance is a complaint, dispute or employee’s expressed feeling of dissatisfaction with aspects of the employees working conditions and working relationships that are outside the employee’s control.
Laws & Workplace regulations
According to BEPZA Instruction, Environment and customs law, GoldTex Garments continuously updates itself and complies with local and national law and regulations including workers and buyers requirements related to all workplace regulation and social laws including environmental regulations, customs law and security. According to changes of law and regulation GoldTex Garments updates their policy and procedure manual. To maintain all this regulatory issues GoldTex appoints an expert in labor law. Company always takes support from him for understanding and implementation of any amendment or any new requirements in the local law.
Working & Over Time hours
According to BEPZA Instruction-1, 1989, GoldTex Garments informs all prospective employees, at the time of hiring, policies and procedures and legal limitation on the maximum number of hours of work per day, week, and months both regular and overtime and the maximum number of consecutive days they can legally be required to work. They provide one day off in every seven day period, except as required to meet urgent business needs. They implement a regular work day of 08 hours and define the regular overtime requirements as maximum two hours per day. GoldTex defines “Urgent business need” that means an employee when required to work on a Friday or holiday a “Day off” shall be given as a substitute on any other day. An employee may be required to work on any festival holiday but two days compensatory holidays with pay shall be allowed to the employee within thirty days immediately after that holiday. GoldTex allow employees legally required or contractually agreed rest breaks and identifies whether they are compensated.
Besides all gazette holidays the company also grants to employees with following type of Leaves:-
Earned Leave: EL
Every employee will be entitled to Earned Leave after completion of one year service, which is calculated as 1 day off each 22 days working basis.
Casual Leave: CL
Every employee will be entitled to 10 days Casual Leave per calendar year.
Festival Leave: FL
Every employee will be entitled minimum to 11 days Festival Leave per calendar year.
Sick Leave: SL
Every employee will be entitled to fourteen (14) SL on half-average wages per calendar year.
Maternity Leave: ML
Any female employee with a minimum of six months of uninterrupted service in the organization shall be entitled to maternity leave.
Saturday-Thursday: 04:30p.m-06-30p.m, Two Hours (If needed)
On any working day, whenever a Department Head feels the need to go for overtime production in order to meet the production/shipment targets, he/she fills the overtime sheet by identifying the persons for overtime, duration of overtime and activity to be done during overtime and send to General Manager or Manager HR & Compliance.
Admin, HR & Compliance Executives & Manager verifies the allowable hour’s limits for each worker identified on the Job Cards.
In case if Admin & HR Executives or Manager does not allow any worker to cross the limits of 12 hours in a week.
Administrative approval is taken from GM or Manager HR & Compliance.
Compensation of overtime working:
HR & Admin Executives & Manager makes sure that overtime charges are paid at double the agreed rate with the monthly basic salary of the employee. Willingly Overtime by workers:
The HR – Admin & Compliance Executives & Manager strictly monitors the willingness of all those employees who usually do the overtime activity and without the will/wish of any employee does not engage him to be at overtime for any reason.
Working Due to Urgent Business Needs:
GoldTex Garments Ltd. can go for production on holidays in case of following business circumstances:-
- Any external unplanned failure, which can stop the production operations.
- Admin, HR & Compliance Executives makes sure that in cases where the company operated on Holiday/Fridays, overtime charges are paid at double the agreed rate and workers will be given one day off within three days on either side.
The HR, Admin, welfare staffs / Compliance staffs are responsible for communicating; deploying and monitoring the GoldTex Garments Ltd. defined “urgent business needs” requirements.
Compensations & benefits
According to BEPZA instruction 1 & 2 of 1989 and Re-fixation of minimum wages and benefits for the workers of the enterprises of EPZs-2013 GoldTex Garments Ltd. pays at least the total minimum compensation required by BEPZA Instruction, including all mandated wages, allowances and benefits to its workers and staff. They do not pay less than the minimum wage prescribed by the BEPZA Instruction to unskilled workers. To other category of workers, wages paid will be in line with those prevailing in the industry at the time, which also provides some discretionary income.
Company makes sure that all the salaries of permanent employees are in accordance with the BEPZA Instruction and disbursed through an adequate procedure on given schedule:
- Salary will be paid within the 07th day of the following month. Each salary will include earnings for all work performed through the end of the previous payroll period.
- Overtime will be paid on same date of salary.
- In the event that a regularly scheduled payday falls on a day off such as a holiday, employees will be paid before that off day.
- Salary of the workers includes all allowances as admissible under the law.
- If a regular payday during an employee’s vacation, the employee may receive his or her earned wages before leaving for vacation if a written request is submitted at least one week prior to departing for vacation.
Correct recording of OT work will be ensured and payment calculation for OT work will be double the rate of wage.
- Company makes sure that all the permanent employees receive bonus on time. Such as attendance bonus, or any other declared by authority.
- All employees will be considered for payment of Festival bonus (100% of Basic). They will be paid full bonus if completed at least Twelve (12) months continuous service.
We don’t agree any kind of deduction. But if anybody unauthorized leave or intentionally absent than as per the absent days will be deduct from the Basic salary by law.
According to BEPZA instruction 1 of 1989 the security system developed and implemented at GoldTex Garments Ltd. consists of:-
PMAC (Personal Movement and Access Control) By CCTV and Security guards
- The gatekeeper to the security room intercepts anyone who enters into the factory premises.
- Security staff first inquiries from the visitor, his name, category of visitor i.e. supplier, general visitor etc. and whom he wants to see.
- Security staff provides the visitor card to visitor for his distinct identification.
- Host, security personal and the area supervisors ensures that the visitors should only visit the area for which they have been authorized to visit and are escorted by some company representative.
- When the visitor leaves the factory premises return visitor card to the security staff.
- Area supervisors of respective sections and security personal ensure that employees” movement should remain confined in their respective areas and they should visit other sections only as a part of assigned job/ task.
Dedicated and locked finished Goods area:
- A separate finished goods area is maintained for the storage of packed cartons.
- The goods are moved into or from the area in the presence of security personnel.
Inspection of Container before and after loading:
- Store In-charge/store Officer/Security Personnel inspects the container when it is docked for loading. The container is inspected for cleanliness, any unwanted item present in the container.
- After the loading, Store In-charge/store Officer/security Personnel again inspects the container to identify any open carton, any unwanted item present in the container, physical condition of cargo after loading.
- Inspection record of container for are and post loading is maintained.
Monitoring during loading:
Store Officer/security personnel monitor the loading of shipment by ensuring the following:
-Only authorized loaders stack the cargo
-Loaders are not changed without his information.
-Loaders do not stay inside the container for longer duration.
-Any open carton is not loaded in the container.
Employees background check/verification:
- At the time of hiring of security and loading workers/Staff background check of the potential employee is performed by Admin/HR Executives and recorded in employee background verification form and kept in personal file of the employee
- To the extent possible, people whose background can’t be verified e.g. new immigrants in the country or city; they are not employed for the jobs related to security.
GoldTex Garments Ltd. provides a safe environment for employees, volunteers, clients and the general public. Deadly weapons are prohibited in all corporation facilities. No one may enter any facility operated by GoldTex Garments Ltd. while carrying a deadly weapon, concealed or otherwise. Employees who work in the field or perform other work outside of their workstation are prohibited from carrying weapons.
Analysis and Findings
We all know that Marketing mix is the set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market. The marketing mix consists of everything the firm can do to influence the demand for the product. The many possibilities can be collected into four groups of variables known as the “4Ps”: Product, price, place, promotion.
Product: If we consider GoldTex garments their main product is readymade garments. According to GoldTex garments product part is described below:
- Variety: There is variation in product category in GoldTex garments. They produce different kinds of product for ladies and gents.
- Quality: This Company always tries to provide the best quality product for its customers as I mentioned before.
- Design: Most of the time GoldTex garments makes the product according to customer’s designs. But sometimes merchandisers proposed some design to their customer.
- Features: There are uncountable features on their pants.
- Brand name: GoldTex produce pants for different branded company. Like M&S, Hagger, Perry Ellis, PVH, Polo Ralph Lauren, Jos-A-Bank, Tom Tailor, BHS, Lands End.
- Packaging: There are three types of packaging. One is standard pack; another one is Flat pack and Hanger pack.
- Services: Sometimes merchandisers do some development sample and some special measurement sample for their customers.
Price: Price is the amount of money customers have to pay to obtain the product.
- List price: Merchandisers quoted some price value for the pant including cutting making charge, materials and accessories charge on what price they are ready to supply their pant.
- Discount: If there is a big volume of order then GoldTex give some discount for their customer.
- Credit terms: Customers cannot purchase the product on credit. They must need to give cash for buying.
As this is a manufacturing company so CM (Cutting Making Finishing) cost is considered as price for them.
Place: Place includes company activities that make the product available to target customers.
- Channels: There are many wholesaling and retailing company working with GoldTex group.
- Coverage: GoldTex has huge customer coverage. They have customer in USA, UK, and Canada.
- Assortments: This organization collects all the fabrics and materials together and assembles it in the factory.
- Logistics: This organization provides logistic support to their customer to some extent.
Promotion: Promotion means activities that communicate the merits of the product and persuade target customers to buy it.
- Advertising: GoldTex garments do not follow any advertising strategy for their customers.
Impact of Compliance
After the incident of Rana plaza and Tazrin Fahion buyers are emphasizing on establishing Compliance issue properly. Due to this GoldTex took initiative to establish all the issues in their factory properly. After ensuring all these issues we found that there are strong impact of ensuring compliance on Order, Export, CTPAT this are given below with graphical exploration.
Though they are passed different audit conducted by Alliance, C-TPAT, M&S, Target, Li & Fung, PVH, BHS and Haggar but also they provided with some new findings which need to complete by providing date. These findings are given below:
Health & Safety:
- Factory did not install centralized & automated fire detection & suppression system.
- No automated fire sprinkler system observed in the high risk areas.
- None of the emergency exits can resist fire for at least 30 minutes.
- Factory did not obtain permission to emit generator and boiler flue gas.
- Facility did not conduct any noise level test in generator area.
- Need to Ensure the pathway of 36 inch,
- Need to Remove double floor marking,
- Need to Install radium exit mark on the wall,
- Need to Increase emergency exit light,
- Need to Increase smoke detector,
- Need to change the decoration of office.
Recommendation and Conclusion
Generally I have given the concentration on compliance performance of GoldTex Garments Limited. I would like to recommend the following areas that should be improved immediately to achieve the desired goals-
- Instead of short-term relationship, Merchandisers need to develop long term relationship with the key parties – buyers, buying houses and suppliers etc.
- Director should clearly share his mission with manager and all the staffs because a clear mission statement guides the employee to work independently and to achieve the organizational objectives.
- GoldTex Garments Limited should identify their position based on the product life cycle and the position of competitors so that they take corrective action to compete & stay in the business.
- GoldTex Garments Limited can establish their own design section and from there they can create unique and innovative products design for marketing. And in this purpose they can contract with professional fashion designer in Bangladesh and abroad to get the maximum results.
- GoldTex Garments Limited can use internet as an efficient promotional tools for buyer awareness about their business. In this purpose they can develop their own website with detail information about their business.
- It should allow its employees to participate in decision making process so that it will help to get more productivity & commitment to work.
The RMG sector is expected to grow despite the global financial crisis of 2009 and political instability of 2014. As China is finding it challenging to make textile and foot wear items at cheap price, due to rising labor costs, many foreign investors, are coming to Bangladesh to take advantage of the low labor cost which is really a good sign for this industry as well as for GoldTex Garments Ltd.
Management of compliance is a big job and is a complex one. Social responsibility and Working conditions are of fundamental importance in Garments. Workers are the most important factor in their business and they have to meet and keep their commitment towards their workers by complying with all local laws and regulations in all locations where business is conducted. GoldTex is fulfilling these issues very efficiently. Now they have to follow up these issues to sustain in the long run because in near future compliance will become a great threat for this industry in Bangladesh. So if it can maintain its quality and standard it can have a huge business potential.