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Officeworks improves factory audit program
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Factory audits are one of several tools in the Officeworks
ethical sourcing program helping to identify and address modern slavery risks.
A comparison of audit findings for sites with reportable
breaches in the 2023 financial year against ratings in the prior period showed
an improvement in the audit status among 76 per cent of suppliers or supplier
sites, where Officeworks had ongoing commercial relationships. While compliance
items remain, they were classified as having a lower level of impact and a
lower risk rating. This demonstrates that the audit program is encouraging
ongoing improvements in Officeworks’ ethical sourcing risks.
Out of 499 audits reviewed in 2024, the audit program identified
33 reportable breaches across 18 supplier sites, involving 14 suppliers. The
most common reportable breaches related to excessive recruitment fees charged
by agencies or employers, a lack of evidence or inconsistent records to verify
workers’ rights to work and working hours and failure to provide workers with
legally required leave entitlement.
In accordance with the Officeworks ethical sourcing program
procedure, the 18 supplier sites with reportable breaches were given red audit
ratings. The Officeworks ethical sourcing team worked with the suppliers or
their sites to remediate the items identified and follow-up with an independent
audit. Two of these sites were exited after the supplier refused to remediate breaches
relating to recruitment fees and insufficient fire safety.
Officeworks worked closely with suppliers to develop corrective action
plans to remediate the reportable breaches identified in the audits.
This year, 27 reportable breaches were remediated, 10 of which
were identified in the previous reporting period. Most of these related to lack
of documentation to verify the right to work and excessive overtime.
Where the auditor was unable to review consistent evidence at
seven supplier sites, Officeworks worked with suppliers to ensure documentation
was provided and verified in a follow-up audit.
Where overtime hours were excessive at four supplier sites,
suppliers were supported to develop better planning and rostering for peak
production periods, systems were implemented to monitor overtime and alert management
when excessive hours were worked, and new policies were introduced to ensure a
regular rest day.
Of the breaches identified during the year, 11 are still open
and Officeworks is currently working to remediate these as part of its regular
supplier audits.
Audits are complemented by worker grievance mechanisms, training
for suppliers and team members and worker surveys.
This year, Officeworks also remediated 516 major
non-conformances by advising suppliers of their factory compliance rating and
major non-conformances, including guidance on remediation after an audit, along
with a reminder notification as to when a new audit is due to be provided.