The LOQI supplier was accredited by INTERTEK in May 2010. This is a third party verification of the supplier's compliance with labour laws, employee health and safety and environmental initiatives. The following information is derived from the May 2010 report.

LABOUR PRACTICES

VOLUNTARY LABOUR
All work is voluntary and employees are free to leave once the shift is ended. Their freedom of movement is not impeded and they may utilise their entitled leave with prior approval. There is no form of prison or indentured labour in practice.

WORKING AGE
Child Labour issues are in compliance with the Code of Conduct and Applicable Labour Laws. No employees are underage, either currently or at the time of employment. The youngest employee is 19 years of age. Regular facility walk throughs shows no sign of child labour use.

FAIR AND EQUAL TREATMENT
All employees are treated with respect and dignity. Employees are not subjected to discrimination in hiring, compensation or discipline, on the basis of gender, age, religion, marital status, race, sexual orientation, disability, disease, nationality, pregnancy, or trade union and/or political affiliation.

WAGES, BENEFITS AND TERMS OF EMPLOYMENT The terms and conditions stated in contract of employment are compliant with local laws. The facility pays all workers more than RMB 1320 per month, equivalent to RMB 6.50 per hour, which meets the local minimum wage standard. All workers are provided with at least one day off in a week. All employees participate in retired insurance, illness or injury insurance, disability caused by work-related injury or occupational disease insurance, unemployment insurance and child-bearing insurance.

Timecard Attendance System is used for time keeping and every employee punches their timecard when they go in and out the workshop.

FREEDOM OF ASSOCIATION AND RECOGNITION OF THE RIGHT TO COLLECTIVE BARGAINING
No discrimination or disciplinary deductions occurs in the facility. Employees also have the right to join or abstain from joining any legal union.

SAFE PLACES TO WORK

The working conditions are safe and hygienic in the facility. The air ventilation system is running well and it is comfortable for working in the production building, and all interviewees showed satisfaction with working environment in this facility. All workers receive health and safety training before they commence employment.

ENVIRONMENTAL PROTECTION

No hazardous chemicals are used in this facility.
All sublimated paper is recycled and re-used for the product packaging. Fabric waste is recycled to make sport shoe soles. All sublimated ink is water-based, and re-calibrated as black ink for the next production round, avoiding waste and water usage.

An OEKO-TEX® Standard 100 certificate was issued in 2012, based on scientifically proven parameters and including internationally binding tests for:

• Illegal substances such as carcinogenic colourants
• Legally regulated substances such as formaldehyde, plasticizers, heavy metals or pentachlorophenol
• Substances which according to current knowledge are harmful to health, but which are not yet regulated or prohibited by law such as pesticides, allergenic dyes or tin-organic compounds
• Parameters such as colour fastness and a skin-friendly pH-value, which are precautionary measures to safeguard consumer health

The facility management have a positive attitude towards environment protection.

RESPONSIBILITY, TRANSPARENCY AND ACCOUNTABILITY

The supplier is transparent in their policies, processes and standards which govern their operations and which relate to their compliance with the Code. They educate their employees and managers on their rights and responsibilities related to upholding the Code.

The facility gives LOQI unhindered access, with or without notice, to their facilities and records relating to compliance with the Code.