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Strengthening Workwear Group governance framework
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Workwear Group is upholding its commitment to manufacturing
integrity through its Group Trust and Verify Audit Program, which has been
successfully implemented in China, India and Bangladesh.
The program was first implemented in China in FY19 by Workwear
Group’s in-country Quality team to address a case of sub-contracting, with
sub-contracting known to introduce risks such as unauthorised production,
quality issues, and ethical concerns such as labour exploitation or
environmental violations. The program was subsequently rolled out in India in
August 2021 and Bangladesh in January 2022.
Group Trust and Verify Audits are conducted on apparel suppliers
located in high-risk countries to verify production is
occurring at Workwear Group-authorised factories. This is achieved by auditing purchase
orders, which allows Workwear Group to confirm the work specified in the order
is being carried out internally at the designated stage of manufacturing,
rather than being subcontracted out to external parties without authorisation.
The audit also includes a set of questions that cover Modern Slavery and
Ethical Sourcing program requirements.
The process acts as both a risk
assessment and traceability tool. It guides compliance with subcontracting
regulations and helps to maintain control over the production process.
If the audit raises any issues, Workwear Group works with the
supplier to remediate the situation. An exit strategy is used as a last resort
if remediation efforts have been exhausted and unsuccessful.
Workwear Group has conducted 2,892 audits since the program
commenced in 2019, including 1,063 in FY24. A further 700 audits are estimated
to occur during the next financial year.
The Group Trust and Verify Audit Program is embedded at Workwear
Group’s core and strategic suppliers based in the key sourcing locations of
China, India and Bangladesh, where the bulk of all purchase orders are
manufactured. The successful implementation of the program demonstrates
Workwear Group’s commitment to upholding manufacturing integrity and minimising
risks associated with subcontracting. Through this program, Workwear Group has
strengthened its supply chain management practices and is able to maintain
high-quality standards across its global supply operations.
Workwear Group has plans to further expand the program in
future. Video audits were trialled for suppliers in Fiji, Sri Lanka and
Indonesia in FY21 and will be rolled out as part of the Group Trust and Verify
Audit Program in FY25. Workwear Group plans to implement the program with local
Australian manufacturing suppliers in FY25.