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Last Updated: 2015.07.31

Fast Retailing Advances Working Conditions at its Production Partners

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From January 2015, Fast Retailing has been enhancing its monitoring and advancing working conditions at the garment factories managed by its production partners, throughout its supply chain. Please refer to here for the details.

The below is a report of progress as of July 31, 2015.

Actions taken to enhance workplace monitoring

1. Introduce workplace monitoring at textile suppliers
-Monitored workplaces managed by the suppliers that provide 30% of all textiles used in UNIQLO products. Currently monitoring for improvement efforts for the non-compliant areas identified.
-From September 2015, workplace and environmental monitoring is to take place for the suppliers that provide 70% of all textiles annually used in UNIQLO products.
2. Enhance auditing method
-Started to shift from announced audits to unannounced audits from January 2015. For UNIQLO and GU suppliers, all audits have shifted to unannounced.
3. Implement training for factory management and factory workers
-Provided training on workers' rights and health and safety to management at a selection of factories in China.

To further enhance monitoring, Fast Retailing is now affiliated with the Fair Labor Association (FLA), an international Non-Profit Organization (NPO), focused on ensuring workers' rights.

Actions taken at Tomwell Garment Co. and Pacific Textiles Ltd.

Following a January 11, 2015 report released by SACOM (Students & Scholars Against Misbehaviour), a Hong Kong-based nongovernmental organization, Fast Retailing has been working closely with and has instructed Tomwell Garment Co., Ltd. and Pacific (Pan Yu) Textiles Limited to take several steps to advance its working conditions. Here below is a list of the actions as of July 31, 2015.

Actions taken at Tomwell Garment Co.

1. Working Hours
-Reviewed production capacity and schedules, and since February 2015 working hours remained within that allowed by FR regulation.
2. Working Environment
-Based on the result of air quality checks by a government approved third party organization, masks were changed from regular to dust protective. Two dust collectors were introduced in the cutting section. For employees in areas with dust levels higher than the safe standard, medical checkups for occupational diseases will take place by the end of August.
-Established a Personal Protective Equipment (PPE) management program under the supervision of the Administration of Work Safety.
3. Management Style
-Investigation conducted by Fast Retailing together with third party auditor through more than 100 factory employees on and off site in February 2015 found no fines.
4. Unrepresented Workers
-Selected worker representatives, and held a committee meeting. In March 2015, established a framework for management and workers to meet regularly.

Actions taken at Pacific (Pan Yu) Textiles Limited.

1. Working Hours
-By the end of June, increased the number of employees by about 700 and strengthened production capacity to manage working hours and consecutive working days for each employee.
2. Working Environment
-Introduced new rules to set the temperature level throughout the factory; if temperatures rise above the set level, the factory increases ventilation.
-Construction work on windows to improve ventilation inside dyeing and finishing sections was completed for all six areas. Additionally, six large fans for air ventilation were introduced on each floor.
-Renovated all windows for the chemical storage area to ventilation windows. Shifted the chemical storage, and ramped the floor and increased drain channels to prevent cleaning water from flowing into the storage area.
-Rolled out training to workers regarding safety and the use of PPEs. To strengthen internal capacity, management received training on fire and safety and chemical management from a third party.
-Government institution investigated dust, odor, noise, and temperature for all production areas (result in August, and based on it, additional action may be taken, if appropriate).
3. Management Style
-Terminated compensation mechanism that effectively functioned as a penalty by the end of May and introduced new compensation mechanisms in all sections from June 2015.

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