Universal Scientific Industrial

We focus our human rights management on our employees and suppliers in the course of our operations, and we prevent human rights violations by conducting due diligence and providing channels for complaints. We use the Self-Assessment Questionnaire (SAQ) of the "Responsible Business Alliance" to identify social, environmental, and ethical risks in our business. In 2020, the average SAQ score of our global manufacturing facilities was higher than 85, so all of them will be low-risk facilities.

In addition to the SAQ annual assessment, we also simultaneously implement the Validated Audit Process (VAP) of the Responsible Business Alliance for all of our factories in the world and new business relationship company, carrying out risk management, investigating the human rights risk assessment results of the past two years. According to the assessment results, “working hours, non-discrimination, sexual harassment, emergency preparedness and occupational safety” are issues that are likely to expose risks. We have formulated annual mitigation measures to raise awareness of human rights through human rights education and training, recruiting sufficient manpower and managing working hours, and implementing hazard identification of the working environment and the negative impact management of risk opportunities.

We assessed human rights risks associated with the company’s suppliers using Supplier Self-Assessment Questionnaire (SSAQ). The company performed sustainability risk assessments on yearly key suppliers and conducted risk identification through the RBA VAP. In 2020, we conducted the SSAQ survey of 576 Tier 1 suppliers, and the survey results showed that nearly 90% of the supplier audit results had a low-risk rating. The Company analyzed the discrepancies of supplier audits and found that the labor and health and safety of the five major aspects accounted for 79% of the items requiring improvement. Based on the assessment results, we identified “compensation and benefits, working hours, emergency preparedness and health and safety Communication” as major human rights risks. We then identified potential high-risk suppliers and continuously track the improvement effect of different risk conditions, and formulated mitigation measures & compensation measures.

Download The Mitigation & Compensation Measures

In 2020, the average training hours on human rights issue for each person were 1.4 hours; the total number of training hours is 37,291 hours; the total number of people trained is 27,306 people (included the resigned employee); therefore, all employees 100% completed human rights issue training. We will continue to focus on human rights protection and offer training programs to raise awareness of human rights to mitigate risks.

USI builds a good employer-employee communication mechanism, and signs labor contracts conforming to local laws and regulations with its employees (the signing rate reached 100%). The contracts explicitly state rights and obligations for both parties to follow. To provide a complete communication channel and to continuously establish an open and smooth management environment built upon mutual trust, so as to facilitate labor relations. In 2020, the Company held a total of 216 employee symposiums, and the communication channels provided are as follows:

We have a Policy of Workplace Humane Treatment Establishment which purpose is to establish a safe, dignified, non-discriminatory, respectful, inclusive, and equal workplace, and prevent all employees are from physical or mental infringement during work. Employees can express their opinions through the "Electronic Employee Feedback Box", "Physical Employee Feedback Box", "Dedicated HR Feedback Box", "Employee Complaint Hotline", and "Written Complaint Submission". Employees' opinions are referred to the relevant responsible units for assistance according to the content of the problem, and we communicate with employees about the corresponding measures and results. There were cases 688 and closed rate reached 100% in 2020.

Our employees may freely organize and participate in trade unions and conduct collective negotiation. USI will not involve the establishment, operations, or management of the trade union in any form; and will maintain a smooth communication channel with the trade union to facilitate the implementation of agreements made in collective negotiations. At the moment, Zhangjiang, Kunshan, and Mexico Facilities have all established a trade union. Among them, the trade union of Mexico Facility already signed a collective agreement with the Company to ensure that union members are protected under the contract.