Working Conditions and Management of Worker Relationship
The local labor market is characterized by high levels of young workers and heavy dependence on agriculture. The flower growing industry itself is estimated to employ over 50,000 workers, 70% of whom are women. The main law governing labor standards is the 2003 Labor Proclamation (amended 2006), which addresses all aspects of employment relations, including unacceptable forms of work, occupational health and safety (OHS), freedom of association and working conditions. Its coverage is limited to workers with contracts of employment. There are gaps in the legislation framework in relation to some of the aspects covered under PS2, including those related to grievance mechanisms, forced labor, OHS, and third party workers. The key labor risks for the sector include low wages, informal employment, limited collective bargaining, gender based issues and harassment, and occupational health and safety.
Workforce: Afriflora is the biggest private employer in the Ziway area and provides adequate labor and working conditions for its workers. Such a conclusion was reached by reviewing conditions at the farms and conducting interviews with workers themselves. Further, the multiple certification schemes referenced above include labor and working conditions aspects and audit reports associated with these schemes indicate good compliance on the part of the company.
As of December 2014, Afriflora had 7,860 workers for their operations in Ziway, 660 in Blen farm and 550 in the expansion project in Adamitulu. Average staff turnover rate is 10% per annum. Female workers constitute 80-85% of the workforce distributed in 3 different operation areas: 60% for farm activities, 35% for grading, and 5% for administrative and other activities. In addition, Afriflora employs third-party workers at its sites in non-core functions related to security services for the farms (160 guards), waste removal (10 workers) and greenhouse building operations (75 workers). The Group does not hire day laborers.
Human Resources procedures and structure: The Group has a three-tiered Human Resources structure with the Department Head managing security and human resources aspects. There are 12 HR Coordinators at the farms (Ziway (10), Adamitulu (1), and Blen Farm (1)), reporting to the HR Head. In addition 2 Greenhouses have one HR coordinator assistant and one HR Officer covering approximately 750 workers. The HR function is part of the management team at all operations and has documented procedures for hiring, selection, age verification, disciplinary practices and termination, terms of employment (wages, benefits, working hours, overtime, rest days, breaks, and leave), and for combating discrimination, and sexual harassment. Working conditions and terms of employment are specified in the written contracts signed by employees, provided and communicated to employees during induction.
Working conditions and terms of employment: Af
riflora seeks to recruit, maintain and motivate its workforce by offering performance based bonuses, excellent benefits and a positive working environment. The Group complies with all national legislation limits related to working days per week, rest days and leave. There is no statutory minimum wage in Ethiopia and wages in the floriculture industry are low. The minimum salary paid by the Group, including overtime and bonuses, is 785 ETB ($38.5) per month, approximately $1.70 per day, for harvesting operations and 1,500 ETB ($74) per month for supervisors. Based on the information for the sector and the region, the Group pays above the average minimum salary which is around $0.80 per day. In addition the Group provides performance based bonuses in all operations and employees have free access to health care plan, dental services, pharmacy discounts, pension and education for their children. The average expenditure on health care and education is equivalent to approximately 1,600 ETB per month ($78 per month) per worker.
Normal working hours begin at 07:00 and last until 17:00 and do not exceed 48 hours a week and 12 hours overtime a week. However, national limits only allow for 20 hours overtime per month which the Group is exceeding. Given that overtime compensation is part of the overall salary expected by employees and as highlighted in the certification audits, the Group is in discussions with the relevant authority to find a positive solution for all parties and will be aligned with legal requirements by 2017 through consultation with the company unions and other worker representative while maintaining workers overall payment level equal. The Group also provides access to drinking water and sanitary facilities in all greenhouses. Adequate places to eat, e.g. cantine, and rest areas (e.g. for lactation, pumping) are not currently provided. Afriflora will improve its communication on terms of employment, including clearly salary calculation methods, including bonuses, overtime, leave and wage deductions applied.
Workers’ Organization: National legislation provides the right to organize and bargain collectively and at Afriflora approximately 80% of the workers are unionized under one union. In general, the Group reports positive relations with the two union representatives who are elected every three years; the new election is scheduled for March 2015. HR management has weekly meetings with the union committee to discuss action items and emerging issues. This committee includes 7 members, two of them are women. All action items are captured in summary minutes and one of the key functions of the union representatives is to verbally communicate to employees the working conditions and terms of employment specified under the collective bargaining agreement signed in 2010. The Group has no grievances or lawsuits pending due to labor issues. Since September 2014, the Group has established a Gender Committee with the task to empower female work
ers to access more skilled jobs, develop projects which will benefit the larger workforce and address any gender based harassment. In addition, the Gender Committee has working groups to discuss with the company means to address issues of immediate concern including: (i) establishing an adequate eating area, and if possible providing meals for lunch; and (ii) establishing resting and lactation areas, which might include nursing facilities for infants.
Non-Discrimination and Equal Opportunity: Afriflora has a non-discrimination policy and is working with a local NGO to empower female workers to access better remunerated positions. Pregnancy testing prior to employment will be discontinued and only done as part of the yearly medical check-ups. The Group has a policy statement of zero tolerance of sexual harassment and one recent documented case which resulted in dismissal of the perpetrator. The Group encourages its employees to denounce any violation of this policy through the grievance mechanism or the gender committee. The Group is currently systematizing its approach to this issue and developing a monitoring system to ensure cases are reported, addressed and mitigation measures monitored. Given the large female worker base, Afriflora will work with a third party to develop activities to improve and continue addressing gender specific issues, including sexual harassment, maternity health and protection at work.
Grievance Mechanism: The Group does not have a formal grievance mechanism for worker complaints and will establish one to ensure all types of worker grievances are captured, recorded, communicated and monitored, with records maintained on actions taken and feedback provided on each grievance.
Protecting the Workforce: The Group has implemented an age verification procedure in the hiring process and specifies the minimum hiring age to be 18 years and 20 years for chemical handling activities.
Workers Engaged by Third Parties: As of November 2014, Afriflora had three main contractors on site covering around 265 workers. These third-party workers are engaged in routine, non-core functions related to the Group’s operations such as site security, waste recollection and greenhouse construction. Afriflora has signed contracts with these contractors specifying all relevant national legislation and regulations on labor standards. Afriflora will further strengthen its monitoring system for third-party performance ensuring all contractors’ worker payments and other labor and OHS requirements are in conformity. In addition, the Group will expand the scope of its grievance mechanism to allow third-party workers to have a channel to raise issues or complaints directly to the Group. This is addressed in the ESAP.
Occupational Health and Safety
Afriflora manages OHS risks and impacts by covering the OHS aspects under the certification schemes and performing risk assessments at all operations. Afriflora has established a coherent OHS policy,
which includes issues relating to the proper handling of pesticides and chemicals, and has set up a Health and Safety Committee with both management and workers representatives on board. The main role of the OHS Committee is to review and improve the OHS performance at all farms. As part of the farm management structure, each greenhouse has 1 OHS officer and a trained first-aid staff. Access to drinking water and clean toilets are provided by the Group. Afriflora has implemented an Integrated Pest Management system in order to reduce its use of pesticides and chemicals. OHS procedures have been developed to address the main OHS risks and impacts and the Group is strengthening its implementation across all operations. Personal protective equipment (PPE) is provided to all employees but its usage needs to be enhanced (such as always using gloves while picking roses). Main injuries at the greenhouses are small cuts and thorn prick injuries. Given the nature of these injuries, tetanus vaccination is part of the health screening process. There is limited and inconsistent data on OHS accidents and injuries, and monitoring of OHS, clear communication to employees and carrying out refresher courses are important actions the Group will perform to ensure compliance and improve performance. Given the high percentage of female employees, in collaboration with the gender committee the Group will continue to strengthen their activities to address gender-specific health concerns.