supply chain

Excessive Overtime in Factories: Moving Beyond the Social Audit Finding

Social audits often highlight excessive working hours. This isn't new, but the causes are complex.

IAA
In Asia Advantage
Author
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Many workers are migrants who seek overtime to maximise earnings. Factory management prefer to minimise fixed costs and use overtime to manage demand spikes. This alignment of interests increases the likelihood of excessive hours.

So, when should international buyers intervene? Clear lines are:
➡️ When hours exceed legal & international standards.
➡️ When there is an impact on worker safety.

Social audits provide visibility, but the real work begins after the finding.

Moving away from a supplier is rarely the best first step. The more effective path is to leverage the existing relationship to drive improvement.

Periodic audits and short-term pressure are not enough. We recommend using accredited third parties for the initial social audit but ensuring on-going corrective action is led by a dedicated, China-based team.

Ultimately, resolving excessive overtime requires effective follow-up. By combining audits with localised, long-term engagement, buyers can help transform audit findings into meaningful and sustainable progress.