18 June 2010 | Andy Allen
Overtime pay was the most consistent problem for Ford’s suppliers, according to a series of vendor inspections the car giant carried out last year.
In its 2009-10 Sustainability Report the company said it had now completed 600 supplier assessments.
Among the issues the company identified within suppliers were “in some cases, a lack of appropriate timekeeping systems, and thus a failure to pay correct overtime wages”.
It also found what it described as “chronic” working hours violations – though stressed this often occurred only during peak production periods.
Ford found cases where there had been a failure to pay the minimum wage or overtime or to provide the correct social insurance, and where inspectors had limited access to appropriate documentation regarding subcontracted labour.
During 2009 the company ran workshops in Argentina, China, Korea, the Philippines, South Africa and Taiwan to train suppliers in Ford’s expectations, local labour law, best practices and management systems.
1,773 managers from 1,478 supplier companies have completed a full day of training since the inception of the programme in 2004.
As part of the programme first-tier suppliers are expected to repeat the briefings through the supply chain.