Communication on Progress - Susbiz India Follow-Up

Participant
Published
  • 2011/11/18
Time period
  • November 2009  –  November 2011
Format
  • Stand alone document – Basic COP Template
Differentiation Level
  • This COP qualifies for the Global Compact Active level
Self-assessment
  • Includes a CEO statement of continued support for the UN Global Compact and its ten principles
  • Description of actions or relevant policies related to Human Rights
  • Description of actions or relevant policies related to Labour
  • Description of actions or relevant policies related to Environment
  • Description of actions or relevant policies related to Anti-Corruption
  • Includes a measurement of outcomes
 
  • Statement of continued support by the Chief Executive Officer
  • Statement of the company's chief executive (CEO or equivalent) expressing continued support for the Global Compact and renewing the company's ongoing commitment to the initiative and its principles.

  • Ongoing implementation of initial sustainability project - Susbiz India (www.susbizindia.org) - initiated by Maters and it's production partner in India (AKFD) by DANIDA and confederation of small and medium sized enterprises (HVR)

Human Rights
  • Assessment, policy and goals
  • Description of the relevance of human rights for the company (i.e. human rights risk-assessment). Description of policies, public commitments and company goals on Human Rights.

  • 1. Initiate a system of providing written employment terms with individual workers and issuance of photo identity cards to all
    2. Installation of electronic time keeping equipment for workers
    3. Establish a mechanism to ensure social security system to all workers in the company"
    4. Explore the possibilities of providing non-financial benefits to the workers and implementation of the suitable system
    5. Formation of shop floor coordination committee with senior workers and management representatives
    6. Organise skill development training for workers in the shop floor and start incentive schemes"
    7. Establishment of documentation practices for such provisions
    8. Development of a Human resource management policy
    9. Development of Standing Order

  • Implementation
  • Description of concrete actions to implement Human Rights policies, address Human Rights risks and respond to Human Rights violations.

  • 1.1. The company will make a plan to enroll workers as regular employee in a gradual manner.
    1.2. The company will start with identifying key workers to be enrolled into this plan.
    1.3. All workers will be provided with a written employment letter which will contain terms and conditions of employment.
    1.4. The company will also explore the possibility of providing photo identity cards to all workers.
    2.1. The company will explore the possibility of installing electronic time keeping machine for the workers.
    2.2. If it decides to install such machine, the workers will be given individual swipe card (or similar card).
    2.3. The first month will be regarded as trial and adequate training and communication will be provided to all workers.
    3.1. The company will ensure that all employees are covered under the applicable ESI, EPF schemes.
    3.2 Current children education support scheme will be documented and support by a policy
    3.3. keep records of all developments.
    3.4. Payment slip will be provided to all workers
    4.1. Explore possibilities of providing things like work uniform, light refreshment, transportation facility etc.
    4.2. Institute scheme like best worker of the month award.
    5.1. The company will form shop floor committee with workers representatives to involve workers in production related issues, safety health and other emergency matters.
    5.2. The company will install suggestion box in the premises and will encourage workers to give suggestions.
    5.3. The management will scrutinise the suggestions on a periodic manner and will take necessary steps towards implementation. A register will be maintained to keep the records
    6.1. Company will make a plan to impart skill development training for production workers.
    6.2. The company will develop a performance index chart for trained employees in collaboration with SUSBIZ team.
    6.3. Periodic evaluation will be carried out to measure the performance of the employees.
    7.1 The company will start documentation process
    7.2. Delegate responsibility to a competent person within the company to look after documentation processes.
    7.3. The top management of the company will supervise periodically all documentation
    8.1. The company will develop a HR policy framework (incorporating issues related to recruitment policy, welfare policy)
    8.2 The policy will be communicated to all workers
    8.3. The policy will be implemented accordingly.
    9.1. The company will prepare appropriate Standing Order instructions duly signed by the competent authority
    9.2. The standing orders will be communicated to all workers

  • Measurement of outcomes
  • Description of how the company monitors and evaluates performance.

  • Status per 26 march 2011. Report done by Sociability (indendant consultant company)
    General comment: Continue with existing systems initiated at project beginning. Monitor implementation once a year.
    1.
    Personal files of each worker is maintained at the administrative office with all details.
    2.
    done
    3.
    All workers who have been working for more than 6 months in the company are covered under Social security provision. There are still some workers not covered under social security provisions as these workers are still in training/ probation period.
    The children education fund policy has not been estabhish due to complexity of the situation.
    Make a system to cover the workers under Social security provision from first day of employment. Make an alternate provision of group insurance for the workers in probation / training category
    Explore the possibility of including this point in the standing order of the company
    4.
    Uniforms are still provided to all workers. No incedent of imposement of fine/ penalty related to uniform usage has been recorded in the company yet. The reward system in working fine
    5.
    The status is maintained for the internal communication
    6.
    No formal skill development training in the unit yet. But there are examples of workers who have been promoted to perform more skillful work, which the workers got on the job training at the site.
    Communicate the company intensions about identifying workers who has the ability to learn new skill and getting promoted to perform more skill ful tasks. Provide ooportunity to workers to get enroll to this skill development provision.
    Periodic performance evaluations are happening in unstructured manner.
    7.
    done
    8.
    The HR policy has been successfully implemented
    9.
    The standing order has not been in place yet. Realignment of some of the provisions is required. A template has been provided for rework on this issue. The standing order needs to be authorised by the regional department of Labour.

Labour
  • Assessment, policy and goals
  • Description of the relevance of labour rights for the company (i.e. labour rights-related risks and opportunities). Description of written policies, public commitments and company goals on labour rights.

  • B1. Initiate a system of providing written employment terms with individual workers and issuance of photo identity cards to all
    Chapter C
    1. Installed sufficient number of fire extinguisher
    2. Develop an emergency exit plan with the location of fire extinguisher
    3. Conduct training on operational aspects of the fire extinguishers
    4. Ensure properly trained persons are distributed in each production floor
    5. Installed First-aid boxes in each floor and conduct training for selected workers
    6. Decongestion plan in the production area
    7. Plan for installation of safe (spark/shock proof) electrical devices in the production floor
    8. Developing/ acquiring MSDS copies for all chemicals used in the production process
    9. Development of Safe operating procedure (SOP) for all machines

    Chapter D
    1. Establish a system of periodic health check-up camps for all workers
    2. take measures to minimise personal chemical fume exposure
    3. providing proper personal protective equipment for the workers
    4. Record keeping of pre-employment health status of workers
    5. Making provision for comfortable sitting arrangement in the QC work with proper illumination

    NEW INITIAVITE - June 2010
    Launch a series of tables using recycled wood from demolished construction sites. Series launched. Series launched april 2011.

    General Information: HANI Arts is a company registered in Gujarat under the Factories Act 1948. This company has been operating for last 25 years. The main business of the company is to undertake demolition of old residential buildings and industrial establishments, by this process recover iron and wood after demolition. The company sells the iron and wood recovered from the demolition process. The number of workers varies from 200-300 depending upon the workload and availability. The nature of work is manual and physically demanding. Women are not employed in the company as the work nature does not allow the employment of woman. Most of the workers are working as contractual basis and earn daily wage. The wage scale depends on the experience and skill. Workers are said to be paid much above the minimum wage applicable in the state at this period (March 2011). HANI ARTS has been associated with AKDPL for last 5 years and supplying wood recoved from the old establishments. Approximately 15% of the wood recoved from the demolition work supplied to AKDPL(which roughly around 16 tons in 2 months). Both the companies entered into written agreement since their association. HARI ARTS recently signed the Code of Conduct (CoC) with AKDPL.

    Labour Standard:
    a. No Formal work agreement procedure exists between the worker and the company
    b. Risk of employment of people under 18 is high as there is no procedure for determining age of a person seeking emplyment
    c. Working hours seem to be higher than the legal limit
    d. Procedure for keeping record for attendance and overtime is not efficient
    e. Overtime monitoring and payment for overtime lack transperancy
    f. No formal procedure for determination of wage scale
    g. Income details (for each worker) are not provided
    h. Advance payment system to workers without formal agreement can be percieved as forced labour practices
    i. Social security measures are not yet provided to the workers (legally required)

    Occupational Health and Safety
    a. The work and the task hazardous in nature. The safety hazards are associated closely with the nature of work
    b. The work is physically demanding and can easily cause fatigue
    c. Prone to Minor and Major injury due to nature of the work
    d. manual lifting of heavy objects is prominent
    e. Risk of Exposure to dust is very high (presence of asbestos in old establishment needs careful investigation)
    f. Sufficient availability of safety gears, proper use of safety gear and quality of the safety gears have to be determined further
    g. First aid facility is not fully available
    h. Lack of training on health and safety to the workers
    i. Lack of standard procedure for securing the workplace before starting work

  • Implementation
  • Description of concrete actions taken by the company to implement labour policies, address labour risks and respond to labour violations.

  • B1.1. The company will make a plan to enroll workers as regular employee in a gradual manner.
    B1.2. The company will start with identifying key workers to be enrolled into this plan.
    B1.3. All workers will be provided with a written employment letter which will contain terms and conditions of employment.
    B1.4. The company will also explore the possibility of providing photo identity cards to all workers.

    Chapter C
    1.1. The company will hire external agency to install sufficient number of fire extinguisher in the premises.
    1.2. The company also will make periodic maintenance agreement with the agency to keep the equipment in working condition
    2.1. The company will develop and define EMERGENCY MANAGEMENT PLAN
    2.2. Each floor of the production facility will have distinctive emergency exit plan displayed in key locations.
    2.3. The company will install emergency alarm system in the building and designate an assembly point
    2.4. The emergency exits will be marked clearly and emergency illumination system will be installed at the exit points, staircase and assembly point
    2.5.Informal training will be conducted to educate the workers more on the emergency exit procedures. Assembly point, alarm system.
    2.6. When a new person joins, the company will make sure to impart emergency preparedness training to the person and keep the records.
    3.1. The management will make sure to conduct periodic training to the workers on fire extinguisher operations by competent external agency.
    3.2.The company management will form a safety committee involving the workers and give the responsibility of maintenance of the fire fighting equipment in the premises.
    3.4.The equipment will contain an inspection chart which will be signed by the designated person after inspection.
    3.5. The company will conduct periodic mock drill in supervision of trained professional no latter than every six months and records will be maintained
    4.1. The management will ensure the presence of sufficient persons who is sufficiently trained on emergency procedures all the time when the production is under operation.
    4.2. Such persons names will be displayed in key locations and will wear arm bands all the time or their pictures will be displayed.
    5.1. The company will installed first aid boxes in key locations.
    5.2. Two persons will be given adequate training on first-aid procedure.
    5.3. The boxes will contain required material as specified by the law.
    5.4. The boxes will contain a chart of material used by the employees and refill properly after every use.
    5.5. The two trained person will ensure proper use of the first aid material and proper refilling.
    6.1 Study the feasibility of constructing a separate storage area for Raw material and Finish products.
    7.1 Explore the possibility of replacing all electrical switch and connector with spark proof devices in the production area
    8.1 Prepare a list of all chemicals use in the production area and spray painting area.
    8.4 Prepare/ Develop the MSDS for each chemical and make the copies of the documents available in key locations
    9.1 Develop Standard Operating Procedure (SOP) for each machine and process. Safety and environmental concerns can be added to the SOP's
    9.2 Display the SOP in each machine.
    9.3 Translate the SOP into regional languages

    Chapter D
    1.1. The company will organise half yearly health check up for all workers by well qualified medical professionals.
    1.2 Arrangement will be made for a periodic visit by a Doctor to the factory for a fixed duration.
    2.1 Explore the possibility of enclosing the paint booth process in a way that prevents the fumes from escaping from the machine.
    2.2 Installed local exhaust ventilation system to ensure that workers do not have to breathe any of fumes, provide masks and also exhaust
    3.1 Carry out a hazard identification exercise for the production processes.
    3.2 Evaluate the need of proper PPE in the production area as well as other operations.
    3.3 Make a plan to provide sufficient number of PPE to workers and also to make sure that the workers are using the PPE. Provide training to workers on appropriate usage of PPE
    3.4 Make a periodic maintenance schedule for PPE and record keeping of the same
    4.1. The company will decide on carrying out pre-employment health checks and maintain records of the health checks carried out
    5.1 Explore the possibility of providing chairs with backrest (lumbar support) to the workers.
    5.2 Making sure the illumination level in the department at the optimum level and comfortable for the workers

    New supplier - HANI ARTS (thrugh AKFD
    1. Provide written contracts in understandable language to each individual worker describing nature of work to be performed, work schedule, and remuneration to be provided to the worker. 2. Keep the record of agreement for each worker

    1. Develop a system to get any official age proof of the new employee before employment. 2. If such document is not avialable, take the assistance from the local labour department

    1. Initiate a mechanism to monitor the working hours of the workers in a weekly basis.2. If possible explore the possibility of divide the work schedule in two shifts if workering hours are more than 48 hours a week

    1. Establish appropriate measures to keep the record of attendance and overtime of each worker. 2. Let the worker also keep record of overtime 3. Make a system to pay overtime dues as required by the Law

    1 Establish a matrix to determine the wage scale based on skill, experience and education. 2. Communicate the matrix to the workers

    1. provide pay slip to the workers with details of payment and deduction made. 2. If not possible to provide pay slip, ensure that wage register is kept with authentic information and signature of the workers

    1. Develop and Introduce a policy towards providing advance salary to the workers. 2. Make individual written agreement on term and condition for advance salary provision and repayment criteria

    1. Provide ESI and PF coverage to the workers according to legal requirement. 2 Alternatively provide group insurance to the workers

    1. Provide good quality and adequate number of safety gears like safety belt, Safety shoes, high duty gloves, Helmets, sagety goggles and appropriate dust mask.
    2. Provide training to workers on general health and safety aspects as well as proper use of PPE
    3. Establish a workplace monitoring and supervision system for use of PPE
    4. Provide mechanical trollies for manual lifting and trasporting of heavy object
    5. Make sure that workplace to be undertaken for demolition does not contain asbestos
    6. Develop a checklist for essential safety inspection to be performed before undertaking the demolition job
    7. Provide first aid material in each work place and provide adequte training on first aid procedure to the selected workers. Make sure that trained workers are present in each work site all the time
    8. Keep a record of each injury happening in the worksite and try to find out the cause of such injury.

  • Measurement of outcomes
  • Description of how the company monitors and evaluates performance.

  • B1. 75% workers enrolled in regular employment scheme. Target to cover 100% by March 2009.The entire work force will be covered as applicable gradually Personal files of each worker is maintained at the administrative office with all details.

    Chapter C
    1.
    Fire safety equipment are adequately installed and manitained
    2.
    The workplace has been redesigned. The emergency plan also has been modified. New marking on the floor has been noticed.
    3.
    The training programmes have been organising on periodical manner. plus continue existing programme.
    4. mostly done. The trained persons wear arm band and cap
    5.
    First aid boxes with all required items are in place. The first aid facility is maintained well by the company
    6.
    Segregation of Raw material and Finish goods has be practising well. The new working areas have been developed in the premises
    7.
    Electrical points are secured and dedicated power point is available for each equipment
    8.
    MSDS copies are available
    9.
    A new machine has been developed by the ttechnical staff internally .SOPs are available for the machines. Formal training has been consucted on safe operations of the machines

    Chapter D
    1.
    The practice has been continuing.
    2.
    The workers are using the rotating table in the paint booth . Use of PPE has been enhanced. The work area is under renovation.
    3.
    The PPE usage has been enhaced with efficient survision now. Workers are noticed with PPE in most of operations.
    4.
    Yet to formally institute pre-employment medical check-up. Institute the pre-employment medical check-up and maintain the records for each new employee
    5.
    Chairs with back rest available at the administrative office, design house and the supervisors rooms.
    Illumination standard at the workplace is satisfactory

Environment
  • Assessment, policy and goals
  • Description of the relevance of environmental protection for the company (i.e. environmental risks and opportunities). Description of policies, public commitments and company goals on environmental protection.

  • E - Energy Conservation:
    1. Installation of Energy efficient electric equipment
    2. Making plan for gradual reduction in energy consumption in participation with workers
    3. Evaluate the feasibility and install clean energy production technology

    F - Waste Management
    1. Establish mechanism to generate minimum possible solid waste and identify process to reuse of solid waste generated during manufacturing process
    2. Initiate action to treat the effluent of the painting unit in accordance with local compliance and keep on monitoring the regularly
    3. Initiation of Proper disposal mechanism for hazardous material such as electric bulb, chemical containers, discarded equipment etc.
    4. Training to the production workers on waste minimisation processes

    NEW INITIAVITE - June 2010
    Launch a series of tables using recycled wood from demolished construction sites. Series launched. Series launched april 2011.

    General Information: HANI Arts is a company registered in Gujarat under the Factories Act 1948. This company has been operating for last 25 years. The main business of the company is to undertake demolition of old residential buildings and industrial establishments, by this process recover iron and wood after demolition. The company sells the iron and wood recovered from the demolition process. The number of workers varies from 200-300 depending upon the workload and availability. The nature of work is manual and physically demanding. Women are not employed in the company as the work nature does not allow the employment of woman. Most of the workers are working as contractual basis and earn daily wage. The wage scale depends on the experience and skill. Workers are said to be paid much above the minimum wage applicable in the state at this period (March 2011). HANI ARTS has been associated with AKDPL for last 5 years and supplying wood recoved from the old establishments. Approximately 15% of the wood recoved from the demolition work supplied to AKDPL(which roughly around 16 tons in 2 months). Both the companies entered into written agreement since their association. HARI ARTS recently signed the Code of Conduct (CoC) with AKDPL.

  • Implementation
  • Description of concrete actions to implement environmental policies, address environmental risks and respond to environmental incidents.

  • E - Energy Conservation:
    1.1. The company will study the feasibility of installing energy saving illumination system like CFL lights in a gradual manner without compromising the illumination requirement by the workers.
    2.1. Posters will be displayed in key locations to turn off electrical equipment when not required. Person will be given responsibility to make sure switching off equipment and electric lights
    2.2. The company will develop and implement Periodic Equipment Maintenance plan.
    3.1. The company will study the feasibility of installing solar system for some of the instruments like water heater, canteen facility.
    3.2. If possible the company will gradually enhance the clean energy in the premises.

    F - Waste Management
    1.1 Special attention will be given to use the raw material optimally to reduce waste.
    1.3. Proper waste collection containers will be installed in some key location to segregate waste at the point of generation.
    1.4. The company will establish a process for the quantification of waste generation in production processes. production processes and tracking the value generated from the waste.
    2.1 The company will make sure that the hazardous effluent from the spray painting area is not discharged untreated. Explore
    2.2 The company will initiate measures to treat the waste and monitor regularly for effectiveness as well as keep the records.
    2.3 Consent/permission will be obtained from the local pollution control board
    2.4 Necessary training will be provided to workers
    3.1. Separate waste collection bins will be installed to collect hazardous waste in a proper manner.
    3.2. Periodic disposal (safe) mechanism will also be institutionalised.
    3.3. Records of the discarded material within this category will be kept by the management
    4.1. The company will make necessary plan to train the workers about waste minimisation procedures.
    4.2. Relevant posters will be displayed to encourage workers to minimize waste generation and ensure appropriate disposal

  • Measurement of outcomes
  • Description of how the company monitors and evaluates environmental performance.

  • E - Energy Conservation:
    Mostly done. in specific: re 3. Evaluate the feasibility and install clean energy production technology
    Still under consideration as the capital investment is very high to implement this objective. Make a gradual plan and analyse the investment requirement. Explore the possibility of partnership project with major customers

    F - Waste Management
    1. Waste minimisation and value realisation process is in place
    2. The appoinemnt of external agency for sludge disposal had to be stopped due to economic invaibility of the process. The cost is too much compared to amount of sludge generated in a year. Explore the possibility of using non-solvent based paint in the operation.
    3. Waste collection bins are in place. Colour coding system in employed for segregating waste of different kinds
    4. Workers are educated in better utilisation of raw material and hence minimising waste generation
    Posters are in Place in the work site

Anti-Corruption
  • Assessment, policy and goals
  • Description of the relevance of anti-corruption for the company (i.e. anti-corruption risk-assessment). Description of policies, public commitments and company goals on anti-corruption.

  • Work towards a 0 tolerance policy in all business matters eventhough it is tough in India. Mater and its production partner in India AKFD is truly committet towards this and will strive towards this in every business aspect eventhough AKFD has over 200 subvendors

  • Implementation
  • Description of concrete actions to implement anti-corruption policies, address anti-corruption risks and respond to incidents.

  • Push 0 tolerance on every occation.

  • Measurement of outcomes
  • Description of how the company monitors and evaluates anti-corruption performance.

  • Ongoing. Must be stressed especially at subvendors.