Partnership Agreement

Between the

Saipan Garment Manufacturers Association

and the

Occupational Safety and Health Administration

EXCELLENCE 2000

The Occupational Safety and Health Administration (OSHA) agrees to a limited partnership with the Saipan Garment Manufacturing Association (SGMA) in the interest of achieving enhanced and voluntary workplace safety and health through the establishment of monitored and maintained safety and health programs for select employers. The overall purpose will be to eliminate the risk of catastrophic fires and to prevent serious injuries and illnesses to workers by establishment of model workplaces for safety and health. Employers who are willing to meet the criteria of this partnership will receive OSHA assistance and annual verification inspections (in accordance with approved protocols) in lieu of programmed inspections.

Selection criteria for participants:

EXECUTlVE COMMITMENT. A letter stating executive commitment to develop and maintain a safety and health program for this workplace and associated staff housing. The letter should be from the Chief Executive Officer (CEO) or equivalent. It should make clear such a program is a priority for the CEO and that he (or she) will personally track programs and hold managers accountable for administration of the program. The letter should be addressed to OSHA and endorsed by SGMA. A similar letter should be addressed to managers and employees and posted in the workplace. Such letters must be also translated (in writing) in the language of the workers.

COMMITMENT TO DEVELOP A FORMAL SAFETY AND HEALTH PROGRAM. The program will be in writing, will be shared with the employees, will be given to OSHA as a part of the selection process, and will address the elements described below:

Element 1: Employee Involvement.

Management will ensure employee involvement with the safety and health program in each of the following methods:

Establishment of a joint employer/employee safety and health committee.

The committee should meet at least quarterly to identify safety and health hazards. Training needs, and other related issues. Valid ideas and/or recommendations will receive reasonable and timely action. Identified imminent danger hazards (those immediately likely to cause death or serious injury which are identified by the committee will be immediately corrected by management. Employees shall be involved in the selection of their own representatives for the committee.

An employee representative shall participate in any scheduled safety inspection/audit–unless performed by independent consultants/contractors.

Employees will be informed via posted notice of hazards and corrections of any safety/health inspections/audits.

Employee representatives will, as a part of their regular duties, be allowed to accompany a compliance officer on any OSHA inspection.

Company safety and health programs, inspections/audits, hazard information, and informational safety and health posters will be in the language of affected workers–as well as English.

Employees will have the right to submit safety and health complaints or recommendations to management. Valid complaints will be corrected within a reasonable time.

Employees will retain the right to submit complaints to OSHA regardless of whether they pursue their complaint within company procedures.

Employees will not be discriminated against as a result of participation in the safety and health program, submitting complaints, or exercising their rights under the OSHA Act.

Element 2: Periodic Safety and Health Inspections/Audits.

Company agrees to conduct periodic workplace inspections/audits for the purpose of identifying and correcting safety and health hazards.

Inspections/audits will be conducted as frequently as deemed necessary by the company, but in no case less than once every twelve months.

The company may utilize the services of a consultant or contractor to perform these inspections/audits in addition to or in lieu of their own inspection/audit.

An employee representative will participate in the inspection/audit of the workplace and staff housing, unless such inspection/audit is conducted by a consultant or contractor.

Company agrees to correct all hazards identified in these inspections/audits within a reasonable time.

Element 3: Training and Education.

Participating companies agrees to:

Train their workforces (in the language of the workers) in the details of their safety and health program.

Train workers on their rights and responsibilities under OSHA. Train workers on fire emergency and evacuation procedures.

Conduct firs and evacuation drills no less than once every six months.

Train selected personnel in basic first aid and CPR. Train personnel in hazard communications.

Make material safety data sheets (MSDSs) available to any requesting employee.

Train workers in any other aspects that will enable them to do their jobs safely.

Element 4: Employment of a Safe and Health Professional within the Factory.

Participating companies agree to have a full-time safety official in the factory whose job will be to manage the safety and health program, reduce injuries/illnesses, and ensure compliance with OSHA standards. This official will have the authority to affect safety and health corrections and to shutdown operations that pose an imminent danger risk.

Element 5: Recordkeeping/injury-illness Analysis.

Company will maintain records of recordable injuries and illnesses as required by OSHA.

Annual summaries of injuries/illnesses will be posted for the information of workers as required by OSHA.

The safety and health official will analyze injury and illness trends to identify work practice improvements or material modifications necessary to prevent accidents.

Element 6: Worker Housing Accommodation.

Where worker accommodations are under the control of the company, the company agrees to comply with all OSHA requirements and to provide living accommodations that are safe, sanitary, and adequate residence.

Element 7: Sanitation.

Company will provide safe drinking water as well as potable water meeting all other OSHA requirements. Monthly testing will be conducted to assure water quality.

Food preparation and dining areas will be maintained in accordance with OSHA requirements.

Toilets and lavatories will conform to OSHA requirements and will be maintained in a clean and functioning manner.

Element 8: Fire Safety.

Company will comply with all OSHA and local fire department requirements for fire prevention, protection, and evacuation.

Employees will be trained and drilled on fire prevention and evacuation procedures.

Fire exits will be clearly marked and will not be blocked or locked.

Element 9: Safety and Health Program Analysis.

The safety and health official will prepare an annual analysis of the company's safety and health program will include a summary of all major hazards found and corrected through inspection and safety committee efforts, those still uncorrected, injury/illness trends, and recommendations for safety and health improvements.

The analysis will be submitted to the CEO or equivalent.

Element 10: Co-operation with OSHA.

Company agrees to allow OSHA to inspect without delay in the event of a catastrophe, fatality, complaint, or referral.

Company agrees to allow OSHA to conduct program verification inspections in accordance with this partnership agreement.

Company agrees to cooperate with OSHA during all inspections and to share information on its safety and health program, program analyses, recordkeeping data, and internal inspection/audit results.

Company agrees to allow an employee representative to participate on OSHA inspections and to allow interviews with workers.

Company will post notices of imminent danger, when issued by OSHA, and then will immediately correct the hazard or voluntarily remove workers from exposure.

OSHA COMMITMENT.

So long as the company is meeting the intent of the partnership, OSHA will conduct focused verification inspections in lieu of programmed inspections.

OSHA verification inspections will be limited in scope to a review and evaluation of the safety and health program, analysis of injuries, interviews of select employees to verify quality, and then a focused inspection to verify compliance. Obvious hazards will be cited.

OSHA will limit the scope of accident and complaint investigations to information relevant to the accident or complaint (including records and will not expand the inspection to other areas.

OSHA will endeavor to support the company in reasonable requested training.

OSHA will furnish technical advice, publications, and training material to the employer upon request. Such requests will not cause an OSHA inspection.

Informal complaints (unsigned) ~- Company will have an opportunity to resolve such complaints; however, i~ corrections are inadequate, an inspection may be made to compel compliance.

PARTNERSHIP LIMITATIONS.

It is stipulated that partnering employers remain subject to OSHA inspections and investigations in accordance with established Agency procedures.

OSHA will conduct accident investigations.

OSHA will conduct investigations of formal (signed) complaints and informal (unsigned) complaints that do not result in voluntary and adequate corrections by the employer.

PARTNERSHIP REVIEW. Partnership agreement will be reviewed in the event of a fatality, catastrophic event, or poor performance identified in an OSHA evaluation. The review will determine whether the agreement will continue

PARTNERSHIP TERMINATION.

Either party may terminate the agreement by written notification of the other party.

OSHA will terminate the agreement for any sustained willful violation or any sustained failure-to-abate situations.

OSHA will terminate the agreement for any major identified program discrepancy that is not improved within a reasonable and agreed upon timeframe.

OSHA will terminate the agreement in the event of proven and unresolved discrimination against employees who exercise their protected safety and health rights under the OSH Act.

Frank Strasheim

Regional Administrator

Occupational Safety & Health Administration

Richard A. Pierce

Executive director

Saipan Garment Manufacturers Association