Dated: 30-01-2018

SOCIAL PERFORMANCE SA 8000: 2014

We at Alpha Knitting (Pvt) Limited are striving to implement all social & legal requirements
of SA 8000:2014; in this regard we are sending you the details of our Management Review
Meeting & Internal Social Audit and Corrective Actions Implemented during last 6 months.
Detail as below:

As decided in pervious un-formal meeting held on 29-01-2018 an Implementation plan were

developed and role / responsibilities and target dates were defined. Now at the moment the
implementation plan has been finalized and implemented in full capacity. All the participants
discussed the implementation status and principally agreed on the following points:

SOCIAL COMPLIANCE POLICY (SA 8000:2014)

The management of Alpha Knitting (Pvt.) Limited Manufacturing and Export of Knitted
Garments is committed to meet not only the requirements of Social Compliance Standards
but also all applicable national and international laws/regulations pertaining to social
Compliance issues. We consider employees as the most valuable asset and to preserve
this asset we treat our employees as citizen having all legal rights.
We are committed to continuously improve our Social Compliance standards by:
 DISCOURAGING CHILD LABOUR, FORCED LABOR AND EMPLOYEE DISCRIMINATION.
 ENCOURAGING POLICIES REGARDING COLLECTIVE BARGAINING, FREEDOM OF
ASSOCIATION, WORKING HOURS AND COMPENSATION.
 PROVIDING HEALTHY AND SAFE WORKING ENVIRONMENT FOR EMPLOYEES.
 CREATING AWARENESS AMONG ALL EMPLOYEES REGARDING DISCIPLINARY
PRACTICES.
 CREATING AWARENESS AMONG ALL INTERESTED PARTIES AND SUPPLIERS.
 TO PROVIDE DUE TRAINING TO OUR EMPLOYEES.
 TO SERVE THE SOCIETY IN BEST POSSIBLE WAYS.
 TO PROVIDE EQUAL AND PERMANENT EMPLOYMENT OPPORTUNITIES TO SKILLED
HUMAN FORCE.
 SETTING OF OBJECTIVES AND TARGETS FOR CONTINUAL IMPROVEMENT IN
ENVIRONMENTAL CONDITIONS
 CONTINUOUS IMPROVEMENT OF SOCIAL MANAGEMENT SYSTEM BY TAKING INTO
CONSIDERATION CHANGES IN LEGISLATION, IN ITS OWN CODE OF CONDUCT
REQUIREMENTS AND ANY OTHER COMPANY REQUIREMENTS.

SOCIAL COMPLIANCE COMMITMENT

The SA8000 Standard is an auditable certification standard based on international workplace

norms of International Labour Organization (ILO) conventions, the Universal Declaration of
Human Rights and the UN Convention on the Rights of the Labour.
We at Alpha Knitting(Pvt) Limited are committed to implement all SA-8000 standards
requirements and all other related local and international instruments such as the ILO
conventions.

We Alpha Knitting (Pvt) Limited are striving at our optimum for the betterment of our products
and services. We are also successfully maintained and implemented international standards
and we make the most of our inclusive resources to fulfill the requirements of these standards.
In this regard our most recent endeavor is; to promote an environment of mutual confidence
flanked by our company and employees. To accomplish all SOCIAL and MORAL
responsibilities, we are working on SOCIAL ACCOUNTABILITY (SA-8000) international
standard. Social accountability standard (SA-8000) urged every business concern to fulfill their
responsibilities in their work place under following parameters. If you want to get more
information regarding this standard you can search their web-site www.saas.org.
Company has following Teams/Committees to control emergencies, grievances and for better
communication between workers and management.

 First Aid Team

 Fire Fighting Team
 Emergency Action Committee (EAC)
 Social Performance Team (SPT)
 Worker Manager Council (WMC)

Child Labour:
At the present moment no child labours in the premises. Company has defined policy for child
labour. Age verification system established and employee’s personal files being maintained.

Forced and Compulsary Labour:

Records of employment agreement of all workers updated, detail terms and conditions
facilities and benefits defined in the agreement and communicated to the workers.

Health & Safety:

Top management has appointed Atif Waheed as HSE In-charge for Health & Safety. All
health & safety issues, which were finalized in implementation plan, are implemented.

Freedom of Association & Right to Collective Bargaining:

Members of Worker Welfare Council has been elected through a fair and transparent election
procedure, these ten members of worker management council have elected and Mr. Waseem
as 8000 WR/ president.

Discrimination:
Top management is committed to eliminate any type of discrimination in hiring, compensation,
assess to training, promotion, recruitment which is based on race, cast, national origin,
religion, gender, sexual, orientation, political affiliation. Management will make sure that there
will be no discrimination for worker in any regards.
Disciplinary Practices:
Top management is committed not to be engaged in corporal punishment, mental, physical
corrosion and verbal abuse etc. Company Representative in association with member of
worker welfare council and top management are responsible to educate employees regarding
policies for disciplinary practices, procedures, forms and formats. CR has provided training on
employee hand book to all workers.

Working Hours:
Management is committed to comply with all applicable laws and regulations regarding
working hours, Worker Representative will help management to identify any non-conformance
regarding working hours.

Remuneration:
Top management is committed to compensate the employees as per all applicable, legal and
legislative requirements. Management has assured that wages of all employees with the basic
need will be meeting with some discretionary income.
The management has identified the basic needs of an average family size of 6.72 personal,
as below (getting help from Statistical survey of Pakistan & employee interviews)

1. Average Food Expenses Per Month = Rs: 9000/-

2. Average Cloth Expenses Per Month = Rs: 3000/-
3. Average Utility Expenses (Electricity+ Tel Phone) Per Month = Rs: 1500/-
4. Average Transport Expenses Per Month = Rs: 1000/-
5. Average House Rent Per Month = Rs: 2000/-
6. Average Medical Expenses Per Month = Rs: 1000/-
Total: = Rs: 17,500/-
An ordinary worker is drawing following minimum income (As Cash);

Sr. # On Account Of; Per Year per Month

1. Monthly Salary @ Rs: 15,000/- per month Rs: 180,000 Rs: 15,000
2. 14 Days Annual Leaves Encashment per Year Rs: 8,076 Rs: 577
(15,000/26x14)
3. Annual Bonus @ One Gross Salary per Year Rs: 14,000 Rs. 583
_______________________________
Total: Rs: 188,076 Rs: 15,577

Company is paying following amount for an ordinary worker as Additional Benefits;

Sr. # On Account Of; Per Year per Month

1. Paid 10 casual leaves with full pay per year Rs: 5,770/- Rs: 481/-
(15,000/26x10)
2. Paid 16 Sick Leaves with half pay per year Rs: 4.416/- Rs. 368/-
(15,000/26x8)
3. Social Security Contribution @ 6% of salary per month Rs: 10,800/- Rs: 900/-

For free medical / other facilities (15,000x6%x12)

4. EOBI Contribution (8,000x5%x12) Rs: 4.800/- Rs: 400/-
5. Group Insurance premium @ Rs: 1300/- per year Rs: 1,300/- Rs: 108/-
_______________________________
Total: Rs: 27,086/- Rs: 2,257/-

Management has assured that;

 No wages deduction for disciplinary purposes.
 Benefits and wages are clearly defined and documentation for work benefits is in full
compliance with law.

Management has defined the following rules to compensate the employee:

 Wages are paid according to the qualification, skill, experience of an employee and
it should also comply the wages law.
 Social Security
 Employee Old Age Benefits (Pension)
 Leave policy as per law.
 Leave encashment.
 Overtime at double rate.
 Gratuity.
 Annual bonus.
 Group insurance

Management System:
Company has established and documented Social Accountability Management System and
committed to continual improvement. Management has defined documented social policy also
communicated to all interested parties and stakeholders. Displayed in premises & training
provided to all employees.

Management has appointed Mr. Atif Waheed as Management Representative for SA

8000:2014 implementation and improvements.

Risk Assessment:
Manager Compliance brief the meeting members that risk assessment is carried on 01-01-
2018 in conjunction and consultation with EAC members and Social Performance Team
including involvement of concerned department heads. Manager Compliance also indicates
that all the corrective action has been taken accordingly as recommended in Risk
Assessment. Risk assessment has been reviewed and communicated to all concerned at
planned intervals.

Control over Supplier:

All the production activities, which are sub contracted, all the sub contractors are working in
the premises of company. The Purchase Manager has conducted meeting with the sub
contractors and make them aware with the legal and standard requirements and find out the
possible options to comply these requirements.
All the suppliers outside factory have been informed through letter about the policy of
company regarding SA 8000:2015. M. Umar (General Manager) is conducting Supplier
Evaluation (out side the factory) to verify the compliance of local labour laws and SA
8000:2014 standard. This process is likely to be completed with in one month. In next meeting
MR will present the data regarding implementation status of labour practices at supplier’s
premises.

Redress of Individual Grievances and Handling Procedure:

Any workers may bring his grievance in respect of any right guaranteed or secured to him by
or under any law or any award or settlement to the notice of his employer in writing, either
himself or through his shop steward or collective bargaining agent within three months of the
day on which the cause of such grievance arises.
Worker Representative is responsible to receive the Workers complaints and Workers
complaints are received through Compliant & Suggestion Boxes.
Complaint & Suggestion box are installed in washrooms. Complaint & Suggestion boxes are
available for employees to drop the information about actual impacts that acquiring the field.
Any suggestion or complaint regarding to Social Issues can drop in this box. In case of
complaint corrective and preventive action request is raised as described ref (AK-FAF-05
&AK-FAF-06). Complaint & Suggestion Instructions has been displayed near complaint &
Suggestion boxes and written inform in Worker hand book.
Where a worker brings his grievance to the notice of the employer, the employer has within
fifteen days of the grievance being brought to his notice, communicate the decision in writing
to the worker.
Where a worker bring his grievance to the notice of his employer though his shop steward or
collective bargaining agent the employer shall within seven days of the grievance being
brought to his notice communication decision in writing to the shop steward or the collective
bargaining agent.
Receive customers or community complaint whether by email or in complaint box and notify
the person concerned about the fact that a client has a complaint.
Request customer or community to put their complaint in writing and to attach relevant
documentation.
Complaints are recorded in complaints register and Key person checks complaint to make
sure that the complaint is recorded in the register this person also identifies the nature and
scope of the complaint and decide which competent person will be handle the complaint and
acknowledge receipt of complaint in writing and indicate which staff will handle the complaint /
investigation. Customers or community Complaints must be solved within seven days.
Internal Audits:
Company is performing internal audits after every six months. Last Internal audit was
performed in January, 2018.
Management Review Meeting:
Company is performing management reviews after every six months. Last Management
review meeting was held in January, 2018.

TRAININGS:
We have highly experienced and well trained staff in our all departments and further we are
arranged on-job trainings for enhancement of their skills, and off-job trainings from external
bodies as well.
EXTERNAL TRAININGS:
 Awareness session of SA-8000:2014 Standard from TQS Pakistan
 Risk Assessment Awareness from TQS Pakistan
 Fire Safety & First Aid from Rescue 1122
 Civil Defense Specialist Instructor’s (Rescue Service) Course by Civil Defense

INTERNAL TRAININGS:
 SA-8000 Policies & Company Policies
 Health & Safety and Environmental
 Work place regulations and laws
 Quality Control & Quality Assurance (Related to Product Parameters & Inspections)
 Customer COCs
 Risk Assessment
 Natural Disaster Safety & Response Training
 Emergency Preparedness/ Response Training
 Usage of PPE's & Its Importance
 First Aid & Fire Fighting Awareness
 Aids & Dengue Awareness
 Job Related Training
 New Employees Orientations

1- Facility’s Main Gate 2-Card Scanning for Attendance of 3-Canteen for Employees.
Employees.

4- Fire Extinguishers 5- Fire Alarm Call Point 6- Electrical Panel

7- Warehouse 8- Accessories Store 9- Stitching Area

10- Checking Area 11- Packing Area 12- Cutting Area

13- Fire Buckets 14- Evacuation Plan 15- Emergency Exit

16- Facility Building 17- Suggestion Box 18- Laboratory

19- Knitting area 20- Embroidery area 21- Sampling department

22- Evacuation plan not provided in 23- First aid box with insufficient 24- Operators working without ear
local language supplies plugs
25- Main Aisles 26- Toilets 27- Generator Area

28- Assembly area 29- Facility Name 30- Main notice board

31- Fabric storage area 32- Yarn storage area 33- Drinking water point
 34- Evacuation Drill 35- Evacuation Drill 36- Evacuation Drill

37- First Aid Training 38- First Aid Training 39- Firefighting Training

40- SPT Meeting 41- EAC Meeting 42- WMC Meeting

We hope that you will guide us how we can further improve our social
performance, your valued suggestions will be highly appreciated.

Best Regards,

Muhammad Umar
General Manager