Idh q2 2014 suppliers in need of support 2014 9 ~ simplified

IDH electronics program Simplified List of suppliers in need of support 1 Sep 2014

This document is a list of suppliers where, in the course of implementing the IDH electronics project, service providers identified some issue or problem which risks to undermine the success of the supplier’s improvements. None of the sources of info listed here is sufficient evidence to confirm the problem mentioned does indeed exist, but they nonetheless suggest that additional effort is needed to check the supplier’s progress and provide support, where needed.

Contents A buyers' perspective...................................................................................................................... 3 Overview of suppliers .................................................................................................................... 9 highlighted for support................................................................................................................ 9 II ........................................................................................................................................................... 11 Survey ............................................................................................................................................ 11 Entry dialogue ............................................................................................................................ 11 Core curriculum ........................................................................................................................ 11 II ........................................................................................................................................................... 12 Survey ............................................................................................................................................ 12 core curriculum......................................................................................................................... 12 JT ......................................................................................................................................................... 12 Survey ............................................................................................................................................ 12 Entry dialogue ............................................................................................................................ 13 Core curriculum ........................................................................................................................ 13 JT ......................................................................................................................................................... 14 Survey ............................................................................................................................................ 14 Entry dialogue ............................................................................................................................ 14 Core curriculum ........................................................................................................................ 14 KA ........................................................................................................................................................ 15 Core curriculum ........................................................................................................................ 15 KA ........................................................................................................................................................ 15 Survey ............................................................................................................................................ 15 ON ....................................................................................................................................................... 15 core curriculum......................................................................................................................... 15 ON ....................................................................................................................................................... 16 Survey ............................................................................................................................................ 16 PE ........................................................................................................................................................ 16 Core curriculum ........................................................................................................................ 16 PE ........................................................................................................................................................ 16 Survey ............................................................................................................................................ 16 Core curriculum ........................................................................................................................ 16

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A buyers' perspective This section highlights visible differences in the employee surveys linked to different buyers. Suppliers were not randomly selected for surveys, so these results do NOT fairly represent the avg. conditions of the buyers mentioned here. Nonetheless, these survey results highlight genuine problems in IDH suppliers and should help prioritize buyers' decisions on how to support suppliers' improvement.

Avg monthly income 平均月薪

¥3 000

¥185 PE

¥2 800 JT ¥2667

KA

ON

¥2 600 II

Will quit within 6 months due to low income 因薪资低，会在6个月以内辞职

II

4% 20%

II

ON

¥0

¥200

¥400

Gender gap in monthly income 月薪上的性别差异

9%

0% 0%

¥2 400

KA PE JT

2%

4%

6%

8%

10%

Will quit within 6 months due to long hours 因工时长，会在6个月以内辞职

II suppliers show low income levels and alarmingly high proportion of employees who might quit their current job since they consider their income too low and working hours too long. Problems with income and working hours might only reflect competitive pressures. But II suppliers experience turn over beyond the norm in the electronics sector. This suggests that II suppliers' neglect the unintended consequences of their choices vis-à-vis income and hours and that their current choices will not help them compete in the long term.

Action point: To support its suppliers' improvements, II could support its suppliers to review how they set income levels, working hours and how they respond to high turn over. A review like this should consider the strong influence of buyers' orders on suppliers' choices on income & working hours.

JT

3

5% ¥3 000

JT 4%

2%

PE II

0%

1% KA ON

0%

Avg monthly income 平均月薪

Didn't sign employment agreement 没签劳动合同

6%

¥185 PE

¥2 800 JT ¥2667

KA

ON

¥2 600 II ¥2 400

10%

20%

Hired through a labor contractor 派遣工

¥0

¥200

¥400

Gender gap in monthly income 月薪上的性别差异

JT shows an alarmingly high proportion of employees who never signed a written employment agreement. This represents a serious risk both to employees who might find it difficult to protect themselves against violations of their rights, and to JT suppliers who will shoulder higher costs in the event that some employees successfully bring them to court over this issue.

JT suppliers show a very visible difference in the monthly income between men and women. While this might be linked to differences in skill and experience, evidence suggesting men's monthly income is an avg of ¥ 400 more vis-à-vis their women peers, a figure high enough to merit deeper review.

Action point: To support its suppliers' improvements, JT could consider how to strengthen its effort to verify whether suppliers sign written employment agreements with employees [and provide employees with a valid copy] and develop policies to impose this minimum requirement on suppliers it does business with.

JT could explore the context behind gender differences in employees' income levels and develop policies that promote fair employment and awareness of different forms of gender discrimination, including hiring policies that funnel women into lower paid employment.

KA

4

5% JT

4%

2%

PE II

0%

1% KA ON

0%

10%

20%

Hired through a labor contractor 派遣工

Problem with fines & deductions 罚款及扣工资有问题

Didn't sign employment agreement 没签劳动合同

6%

8% KA

20%

II 10%

ON PE

12% JT

0% 0%

10%

20%

Problem with income calculations 工资的计算有问题

KA suppliers show more employees hired by labor contractors. One difficulty in interpreting these results is that some IDH suppliers were not honest in reporting this issue. KA's results might suggest their suppliers rely more on labor contractors, or it might show that their suppliers were more honest in reporting.

A simpler-to-interpret result is that a visibly higher proportion of KA employees report problems with fines & deductions to their income.

Action point: To support its suppliers' improvements, KA could consider how it might revise its policies and methods to oversee the use of labor contractors, with a view to meet requirements of labor law, promote direct employment and reduce risks linked to labor contractors [e.g., problems hidden by middle-men; tensions between flexible and longterm employees; low commitment by both employer & employee to longer-term improvements]. A review like this should consider the strong influence of buyers' orders on suppliers' employment choices.

KA could consider whether its auditing methods effectively identify the existence of fines and deductions from employees' income and develop responses to the issue to reduce the problem.

ON

5

Avg monthly income 平均月薪

¥3 000

¥185 PE

¥2 800 JT ¥2667

KA

ON

¥2 600 II ¥2 400 ¥0

¥200

¥400

Gender gap in monthly income 月薪上的性别差异

ON suppliers show a very visible difference in the monthly income between men and women. While this might be linked to differences in skill and experience, evidence suggesting men's monthly income is an avg of ¥ 350 more vis-à-vis their women peers, a figure high enough to merit deeper review.

Action point: To support its suppliers' improvements, ON could explore the context behind gender differences in employees' income levels and develop policies that promote fair employment and awareness of different forms of gender discrimination, including hiring policies that funnel women into lower paid employment.

PE

6

5% JT

4%

2%

PE II

0%

1% KA ON

0%

10%

20%

Hired through a labor contractor 派遣工

“Employee reps represent employee voice ” 员工代表代表了员工的心声

Didn't sign employment agreement 没签劳动合同

40%

6%

22% ON JT II

20% PE

21% KA

0% 0% 20% 40% Employees believe employee reps elected 员工认为员工代表是通过 选举产生的

PE suppliers show more employees hired by labor contractors. One difficulty in interpreting these results is that some IDH suppliers were not honest in reporting this issue. PE's results might suggest their suppliers rely more on labor contractors, or it might show that their suppliers were more honest in reporting.

PE joined the IDH effort with a strong commitment to build systems that give employees more voice to inform enterprise decisions. It is therefore noteworthy that of all of the buyers involved in IDH, the employees of PE suppliers show the lowest confidence that employee reps were elected and genuinely represent employees' voice. This possibly reflects that the pressure PE is putting on suppliers to develop employee rep systems led some enterprises to develop less effective systems which look good to outsiders but do not meet employees' aspirations.

Action point: To support its suppliers' improvements, PE could consider how it might revise policies and methods to oversee the use of labor contractors, with a view to meet requirements of labor law, promote direct employment and reduce risks linked to labor contractors [e.g., problems hidden by middle-men; tensions between flexible and longterm employees; low commitment by both employer & employee to longer-term improvements]. A review like this should consider the strong influence of buyers' orders on suppliers' employment choices.

PE could consider how to better invest resources to oversee the evolution of employee rep systems in its suppliers, and develop methods to do so which keep in mind that effective appraisal of

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employee rep systems depends on the involvement of front-line employees.

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Overview of suppliers highlighted for support The list below reviews suppliers where survey results and on-site experiences identified a need for additional support to promote improvements to the work environment. Checks below show the source of the sign that a supplier needs support.

"Doubtful positive" refers to survey results which were so beyond the norm of most suppliers that there is some doubt concerning their credibility. "Poor results" reflects survey results which highlighted more extreme problems. "Entry dialogue" refers issues identified during the qualitative portion of the Entry Point Appraisal. "Core curriculum" denotes where service providers identified problems while implementing Core Curriculum.

The Dialogue maturity section simplifies KPIs collected during the Entry Point Appraisal and converts them to a 1 to 10 score. This "Quick view" does not include KPIs collected from service providers during the Core Curriculum due to difficulties interpreting Core Curriculum KPIs. The objective of these scores is to distinguish differences in the maturity of suppliers' systems to collect and respond to employee concerns, including management systems ["Non-rep systems"] and employee rep systems.

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Dialogue maturity: Quick view Survey Doubtful positive

II: All suppliers II II

Survey Poor results

√ √

JT: All suppliers JT √ JT √ KA: All suppliers KA KA ON: All suppliers ON ON √ PE: All suppliers PE √ PE √

Entry dialogue

√

√ √

Non-rep comm systems Core [Avg all suppliers: curriculum 6.2]

Rep systems [Avg all suppliers: 4.2]

5.7 5.2 5.2

4.2 Not avail.

2.5

√

6.9 8.4 9.2

3.8 Not avail.

4.8

√

5.5 5.2 4.4

4.5 4.5 4.8

√

6.8 4.8 8.4

5.2 5.8 4.3

5.8 6.0 6.4

4.6 3.0 4.3

√ √

√

√ √

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Suppliers in need of support Supplier code

Source of info

Issue

Supporting references

Survey



Employees experience conflict with supervisor 员工与主管的关系 很差

6%

Trust in management exceedingly low.

4%

2%

0% 0%

50%

100%

Employees trust management 员工 信任管理团队

II

 Entry dialogue



Management does not support involvement of front-line employees. 

Core curriculum



Management shows signs of low commitment.

Management expresses preference for “expert” trainings for management reps with responsibility to follow through on improvements; they question both the merit and the need for involving front-line employees in training or for dialogue between management and front-line employees.

Despite signs of tension between management & employees and the benefits of improving the existing comm’s system, management postpones Core curriculum, and then suggests there is an agreement not to proceed with Core curriculum.

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Survey



Working hours show exceedingly little control.

Trust in management exceedingly low.

6%

Employees experience conflict with supervisor 员工与主管的关系…



% employees working 60 hours a week or less during busiest times…

100% 80% 60% 40% 20% 0% 0%

II

20%

40%

60%

4%

2%

0% 0%

80% 100%

% employees working 60 hours a week or less…

core curriculum



Management interferes with employee involvement.



Front-line employee involvement in the employee rep system is limited.



High employee satisfaction for low income doubtful.

High employee pride doubtful.

Well controlled working hours doubtful.

High trust in management doubtful.

 

50%

100%

Employees trust management 员工…

Supplier sent HR personnel to join training session for front-line employees, and trainer felt this visibly reduced employee involvement.

Of 17 employee reps, 8 were engineers or supervisors.

Management reports some were elected by front-line employees and others were recently promoted to position of supervisor.

10,0



Employees "absolutely" feel pride for working for this enterprise 员工“绝对”感到自豪…

Survey

Avg satisfaction 1 to 10 平均满意度…

JT

 

80%

8,0

60% 40%

6,0

20%

4,0 1500

2500

3500

Avg income of employees with income below 4000 收入在4000元以下的…

4500

0% 0%

50%

100%

% employees working 60 hours a week or less…

12

65% 6%

80% 60%

Employees experience conflict with supervisor 员工与主管的关系…

% employees working 60 hours a week or less during busiest times 员工最忙时，一个星期工作…

100%

4%

40% 25%

20% 0% 0%

50%

100%

2%

0% 0%

% employees working 60 hours a week or less 员工一个星期工作…

 Entry dialogue





Core curriculum

 

Management not very open to discussion with outsiders.

Employees express few opinions and show limited skill in expressing themselves Management limits employee involvement in employee rep system.

20%

40%

60%

80%

100%

Employees trust management 员工…



Management resisted the entry point assessment for a long time and never excepted management interviews.



Employees express few opinions and show limited skill in expressing themselves.



Management chose 6 employee reps, but is nervous that freely elected employee reps might promote antagonism, and there limits the selection of employee reps.  Employee reps & volunteers from previous curriculum not Employee involvement is limited. consistently given opportunity to join future curriculum.  Through to CC#4 , CIT focus is on work environment and CIT is finding it difficult to progress management attitude, and is ignoring some issues with on modest improvements. income which employees considered the most urgent.

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

8,0

6,0

4,0 1500

2500

3500

Core curriculum

Employee involvement is limited.



Management is not providing sufficient support to IDH methodology.

0%

50%

100%

% employees working 60 hours a week or less 员工一个星期工作…

6%

80% 60%

4%

40% 25%

20%

2%

0%

50% % employees working 60 hours a week or less 员工一个星期工作…



0%

65%

100%

0%

Employees express few opinions and show limited skill in expressing themselves

20%

4500

0%



40%

Avg income of employees with income below 4000 收入在4000元以下的…

JT

Entry dialogue

60%

Employees experience conflict with supervisor 员工与主管的关系…

Survey

 

High employee satisfaction for low income doubtful.

High employee pride doubtful.

Well controlled working hours doubtful.

High trust in management doubtful.

% employees working 60 hours a week or less during busiest times…



80%

Employees "absolutely" feel pride for working for this enterprise 员工“绝对”感到自豪…

Avg satisfaction 1 to 10 平均满意度…

10,0

100%

0%

20%

40%

60%

80%

100%

Employees trust management 员工…



Visible number of front-line employees do not give their opinions, either in written or spoken form.



Only 16 employees joined the CC#3 session for employees; only 3 of those employees had joined either CC#1 or #2; and trainers had previously expressly recommended that 1 of the 3 employees not join future training.

In addition to poor continuous involvement by employees, management does not follow IDH's method for recommending new employees for training, preferring to choose office employees and employees who will soon



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resign, while other employees forced to return to work before training is finished.

KA

Core curriculum

Survey

Employee involvement is limited.

 

Employees not yet meeting with management in CIT. No management rep with sufficient authority joins IDH sessions.



CIT does not meet consistently.



 

Employee reps & volunteers from previous curriculum not consistently given opportunity to CC#2.

Management suggests employee involvement is low due to employees feeling too busy with work.

 

At time of CC#3, CIT members were selected, but seldome if ever meet. % employees working 60 hours a week or less during busiest times 员工最忙时，一个星期工作…

KA



Working hours show exceedingly little control.

100% 80% 60% 40% 20% 0% 0%

20%

40%

60%

80%

100%

% employees working 60 hours a week or less 员工一个星期工作…

ON

core curriculum



Management is not providing sufficient support to IDH methodology.



In CC#3, 50% of employees did not arrive on time, seriously disrupting the training session. Few management reps joined the management sessions, and some left before the session ended while others joined in the middle of the training.

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Employees "absolutely" feel pride for working for this enterprise 员工“绝对”感到自豪…

80% 60% 40%

ON

Survey



High employee pride doubtful.

20% 0% 0%

50%

100%

% employees working 60 hours a week or less…

PE

Core curriculum



Employee involvement is limited.



Management is not committed to building a employee rep system.

Some employees consider the quitting, slow-downs or strikes to better pressure management for improvements.



 



Employee reps & volunteers from previous curriculum not consistently given opportunity to join future curriculum.

No plan exists to build a functioning employee rep system after multiple sessions of curriculum.

Service provider noted some employees discussing this kind of action in CC#1.

65%

% employees working 60 hours a week or less during busiest times 员工最忙时，一个星期工作…

100% 80% 60%

Survey



40%

Well controlled working hours doubtful.

25%

20%

PE

0% 0%

50%

100%

% employees working 60 hours a week or less 员工一个星期工作…

 Core curriculum



Management shows signs of low commitment.

Upper management does not join curriculum. Other management reps show support for improvements in their attitude but show extremely little motivation in following through with action.

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

Employee involvement is limited.



Some employees consider the quitting, slow-downs or strikes to better pressure management for improvements.



Far fewer than 30 employees joined the employee training. Employee reps & volunteers from previous curriculum not consistently given opportunity to join future curriculum.



Service provider noted some employees discussing this kind of action in CC#1.

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