Presented by Monkey Forest Consulting

PR2: LABOUR AND WORKING CONDITIONS

Session #11 – Option 1

OBJECTIVE AND OUTLINE

Ø  “The project will have the positive impact of new jobs”. Really?

Ø  Labour Codes, ILO and PR2 Overview

Ø  Impact assessment vs. due diligence for labour

Ø  PR2 Overview (child and forced labour, non-discrimination and equal opportunities, retrenchment, workers’ organisations, supply chain)

Ø  Contractor management

Ø  Voluntary Principles

Ø  Worker grievance mechanism

The objective of this module is to interactively discuss and review key considerations associated with labour and working conditions. Topics will

include:

“GREAT IMPACT IN TERMS OF EMPLOYMENT…”

“ Key issues for the Project are related to employment. The Project is located near existing industrial facilities so there are relatively limited new impacts due to the historical development of heavy industry in the local study area.”

“There will also be no detrimental impacts on local shops, businesses or facilities as a result of either development. In addition, local employment opportunities will be created during the construction phases for unskilled labour.”

“…the project implementation will imply a great impact in terms of employment, given that during both the construction and operational phase a great amount of workforce will be employed for the project realization.”

…OR NOT.

“There are about 80 contractors, none of them who care about the people . There are only 2-4 companies that are doing something. Only words. None of the locals are taken… And why better [people from another, distant city]? Because of corruption and connections.”

“[Another company] held the same interviews as you when the [neighbouring facility] was built saying 90% of population would be employed there. But now, finding a job there is a real problem the main reason being bribery. To find a job one needs to have a cover or money.”

“OUR LABOUR LAWS ARE VERY STRINGENT!”

EBRD REQUIRES: LABOUR CODES AND ILO

ü  Convention 87 on Freedom of Association and Protection of the Right to Organize

ü  Convention 98 on the Right to Organize and Collective Bargaining

ü  Convention 29 on Forced Labor

ü  Convention 105 on the Abolition of Forced Labor

ü  Convention 138 on Minimum Age (of Employment)

ü  Convention 182 on the Worst Forms of Child Labor

ü  Convention 100 on Equal Remuneration

ü  Convention 111 on Discrimination (Employment and Occupation)

PR2 OVERVIEW Ø  HR policies

Ø  Working relationships

Ø  Child & forced labour

Ø  Non-discrimination

Ø  Workers’ organisations

Ø  Wages, benefits, conditions

Ø  Occupational Health and Safety

Ø  Worker accommodation

Ø  Retrenchment

Ø  Grievance mechanism

Ø  Contractors & supply chain

Ø  Security personnel

INFORMATION REQUEST

Workforce Data Ø  Current workforce statistics and, if available, including:

Ø Part-time and full-time staff Ø Male and female data disaggregated Ø Ethnicity, if documented through HR procedures Ø Length of employment

Ø  Number of employees joining and leaving in the given year

INFORMATION REQUEST Management Structure

Ø  Existing organizational chart (diagram of management hierarchy and responsibilities) for the following key managers that include the following functions:

Ø  Human resources

Ø  Industrial relations

Ø  Training

Ø  Personnel records and payroll administration

Ø  Health and Safety

Ø  Construction or renovation contractor management

Ø  Supply chain or procurement

Ø  Security

INFORMATION REQUEST

Policies and Procedures Ø  Human resources policy Ø  Collective bargaining agreements Ø  Recruitment and downsizing policies and procedures Ø  Grievance mechanism or procedures Ø  Employee health and safety policy Ø  Contractor management policies or procedures

INFORMATION REQUEST

Staff Selection, Reward and Development Ø  Human resources policy Ø  Information on recruitment, including information on any recruitment

agencies that might be used Ø  Procedures for recording hours Ø  Procedures for determining wage levels Ø  Procedures for rewards and development Ø  Systems for managing employment records

NOT ALL PROJECTS HAVE THE SAME RISKS

Why do these increase risks?

What additional actions would demonstrate due diligence for a high turn-over activity employing many migrant workers?

Riskier projects

Ø  Labour intensive industries Ø Migrant workers Ø Where there is a history of

worker issues Ø  Primary sector activities Ø  Construction Ø Mass redundancies / mass

recruitment

FORCED LABOUR & CHILD LABOUR

Ø  New member countries of EU – transit countries

Ø  Non-EU countries + Ukraine – source countries

Ø  Increasing: –  Sexual exploitation (22%)

–  Labour exploitation (68%)

Ø  Child labour decreasing –  Except in Mongolia

FORCED LABOUR DUE DILIGENCE

Ø  How prevented? Ø  Recruitment charges

reasonable Ø  Reputable agencies Ø  Reasonable costs for housing

and food etc. Ø  Free to leave Ø  Free access to documents

(secure) Ø  No involuntary prison labour Ø  Overtime – legal and free of

coercion

NON - DISCRIMINATION AND EQUAL OPPORTUNITIES

Country Labour practice gender inclusion gap

Albania Large Bosnia Large Croatia Large Macedonia Large Mongolia Large Turkey Large Serbia Large Ukraine Large

•  How are jobs advertised? •  How are jobs defined? •  Applications from

underrepresented groups •  Pre and employment health tests •  Interview questions •  Pay equity •  Harassment monitored &

addressed •  Accommodations for disabled

TRIANGULATION

Ø When should a consultant hold worker interviews?

Ø  Should managers be permitted to attend worker interviews?

Ø  If workers are not interviewed, what other standard outputs could be checked as evidence of good practice?

TRIANGULATION -- DISCUSSION

Working Relationships Ø  Has the client documented and communicated to all workers their

rights under national labour and employment law and any applicable collective agreements, working conditions and terms of employment? The following aspects should be included: Ø Entitlement to wages Ø Hours of work Ø Overtime arrangements and overtime compensation Ø Benefits (leave for illness, maternity/paternity or holiday) (PS2 7)

RETRENCHMENT

Ø  For all retrenchment over 30 redundancies (less for small companies)

Ø  Requires ü  Plan ü  Consult with unions ü  Explain why needed ü  Transparent selection criteria ü  Severance pay ü  Support and training to find alternative

employ ü  Consider food security & community

dependency

EBRD REQUIREMENTS: WORKER’S ORGANIZATIONS

ü  Don’t penalize workers for joining union ü  Don’t condition employment on not joining a union ü  Don’t force them to join a union ü Must negotiate in good faith where required by law ü Must honour terms of collective agreements ü  Cannot interfere with operation of union ü  Can’t retaliate against workers for participating in union

activities

WORKER ACCOMMODATION

Ø  Where a client provides accommodation must be:

Ø  Appropriate, clean & safe. Ø  Meet national laws & international

good practice for: ü  Charging workers ü  Minimum space ü  Sanitary, potable water, laundry &

cooking facilities ü  Health, fire safety, hazards, first aid

& medical facilities ü  Heating & ventilation. ü  Freedom of movement; and ü  Location with regard to workplace.

CONTRACTORS (NON-EMPLOYEE WORKERS)

For non-employee workers engaged through contractors or intermediaries to perform work directly related to the the project, the client will use reasonable efforts to: (i)  Ascertain they are reputable

and legitimate enterprises; & (ii)  require that they apply

requirements in paragraphs 6-18 and 20 above.

EBRD

Consultant: “That person has no PPE and is walking on a dark mining road at night.” HSE staff: “That is not our employee. It’s a contractor.”

VOLUNTARY PRINCIPLES ON SECURITY AND HUMAN RIGHTS

Ø  Risk Assessment –  Identify security risks

–  Potential for violence

–  Human rights record

–  Rule of law

–  Conflict analysis

–  Equipment transfers

Ø  Companies and Public Security Ø  Companies and Private Security

CASE STUDY EXAMPLE - PRIVATE SECURITY RISKS

Industry history shows that private security providers have been guilty of the full range of abuses ranging from simple physical assault to torture and inappropriate use of lethal force.

Even basic tasks can bring problems –

Example 1 A gate guard correctly but rudely denies a community leader access to a site; he yells angrily at the guard who slaps him and throws him to the ground. The community leader does not leave and the guard threatens this leader with a dog as well.

CASE STUDY EXAMPLE - PUBLIC SECURITY FORCES

Example A site security manager requests the local police to help investigate the theft of food from the company dining facility and gives them the name of a contract employee who is suspected of being involved. While questioning him at the local police station, the police severely beat him and burn him with cigarettes.

Risk exists at even low levels of engagement

WORKER GRIEVANCE MECHANISM

Ø  Clear procedure (not a comment box)

Ø Widely distributed / Explained at time of hire

Ø  Confirms “non-retaliation” Ø  Results tracked in management

system

GOOD PRACTICE DOCUMENTS

Ø  Human Resources Policies: Guidance Note for Clients

Ø  Employment Documentation: guidance for clients

Ø  Non-discrimination and equal opportunity: guidance for clients

Ø  Children, young people and work: guidance for clients

Ø  Forced labour: guidance for clients

Ø  Retrenchment and Restructuring – Labour and Community Issues, a Brief Guide

Ø  Workers’ accommodation: processes and standards

http://www.ebrd.com/pages/about/principles/sustainability/requirements/guidance.shtml

 

LABOUR ASSESSMENT EXERCISE

Ø  Window/ manufacturing client

Ø  Four facilities ranging from 185 to 603 full time workers

Ø  All employees covered by the same policies

Ø  Assess compliance Ø  Best Practice

Ø  Good practice//largely compliant

Ø  Minor deficiencies

Ø  Major deficiencies

TAKE AWAY MESSAGES

Ø  Employment is not automatically a positive impact. Ø  Having a stringent labour code alone is not enough to reduce labour

risks. Ø  PR2 seeks documented evidence of policies and procedures that

reduce the negative impacts of labour. Ø  Key challenge for consultants is assessing “appropriate” and

“reasonable” efforts to comply with PR2.

1 800 491 0274 info@monkeyforestconsulting.com www.monkeyforestconsulting.com