Jiahe currently has 410 employees and it is estimated that this project will create 250 new direct jobs. In addition, and as part of this project, an undetermined number of construction workers will be hired through contractors for the new site and expansions works. Most of the construction workers will come from local areas.
Human Resources Policies and Procedures
Jiahe has a corporate human resources (HR) policy that specifies the terms of employment and working conditions. These include procedures related to recruitment, probation, training, performance review, promotion, insurance, salary and compensation, resignation, lay-off and firing, vacation, other type of leave, and retirement. The company has a HR policy training that is part of the new employee induction. This policy has been communicated to all direct workers and copies have been distributed.
Working Conditions and Term of Employment
All workers are on Jiahe’s payroll and there is no temporary labor. Under the employment terms, that strictly follow national labor law, workers are employed on fixed term contracts which are renewable annually subject to satisfactory performance and availability of work. Overtime work is uncommon and is usually only associated with emergencies. Overtime work during holidays is compensated on the basis of 2 – 3 times of base salary. The average salary at Jiahe is 20% higher than the average salary of similar industries in the region. All employees have access to insurance and pension funds as required by labor law. For third party workers, construction or other contractors who may work at Jiahe sites, Jiahe requires these contractors to fully comply with national labor laws and the HR unit conducts monthly labor inspections. Local government labor agency also conduct annual inspection at Jiahe.
Workers’ Organization
A worker union with elected union leaders is set up at Jiahe, as required by the All China Federation of Trade Unions (ACFTU). The union head is elected by employees and the union management is independent of corporate management. Jiahe management allows for collective bargaining.
Non-discrimination and Equal Opportunity
The HR policy specifies non-discrimination and equal opportunity. During appraisal, no procedures and/or practices have been identified as discriminatory. All hiring and promotion processes are merit-based and follow specific procedures. When candidates have equal qualifications, preferences of hiring are given to local residents and female workers. Currently, 30% of employees are female and Jiahe plans to recruit more female employees in the expansion project.
Grievance Mechanism
The grievance mechanism is introduced during the employee induction and refreshed as part of the HR training. Employees can report their grievances to either HR manager or union leader. All grievances and mitigations taken are recorded and reported to management for review. Both, the HR manager and union leader shall report to senior management if grievances could not be solved. The general manager’s suggestion box is available for anonymous grievances.
Protecting the Work Force
Jiahe complies with national law and does not hire workers below the age of 18 years. HR checks birth and school certificates during the hiring process.
Third-Party Workers
The project has 16 months’ construction schedule and the workforce will number approximately 200 at peak construction. Most of the workers will be hired through a main subcontractor and come from the local communities. During the duration of construction, Jiahe shall monitor contractors and sub-contractors to ensure they comply with national labor legislation and IFC Performance Standard 2 requirements. In particular, Jiahe shall regularly monitor that (i) contractors have internal work regulations approved which are communicated and explained to workers at the time of recruitment; (ii) workers are covered by health and social security; (iii) workers are provided with a copy of their contract; (iv) no workers’ personal identification is retained against their will; (v) contractors have a system to adequately record and compensate for overtime work; and (vi) workers’ wages comply with the remunerations established by applicable national requirements (ESAP #3). Jiahe shall also ensure that contractors have a system to verify workers’ age, and that no children below the minimum working age is engaged in any type of work (ESAP #3). Jiahe shall ensure that contractors make all workers aware of the existence of a worker grievance mechanism, and shall facilitate access to it (ESAP #3).
Occupational Health and Safety
Jiahe has routine OHS training, including new employee training and annual refreshers. There have been no fatal or serious accidents in the Company’s operational history. The company undertakes a detailed OHS risk assessment, identifying specific job hazards and potential impacts. OHS operation procedures have been implemented for each type of position and proper personal protection equipment (PPE) is provided. The OHS management system is also implemented through a set of safety tools and methods, including systematic inspections, walk through/observation, and peer-to-peer behavior check. Jiahe sets up KPI targets (e.g., total recordable incidents, work permit review, etc.) for OHS performance which are reviewed annually by management and actions taken accordingly. The total recordable incident (TRI) rates are 30% lower than the industry average.
The workplace dust levels and noise levels at stationary working positions meet both local regulatory requirements and good international industry practices. As part of this project, all employees working in areas with high noise levels will be equipped with ear muffles (ESAP #4). The existing plant site is crowded and OHS management will be difficult during the construction phase. As indicated in the ESAP (ESAP #5), Jiahe will develop and implement an OHS management plan for contractors to prevent accidents and injuries during construction. As part of the contractor selection process, OHS and other EHS requirements will be included in the bidding documents (ESAP #5). The OHS management plan should include the following components, but not limited to, roles & responsibility, policies and procedures, performance monitoring and reporting, emergency and incident response, induction and training, site safety procedures, and communication.
Supply Chain
Jiahe purchases its edible oils, coffee, and tea through traders. Since the main product in Jiahe is creamer, the procurement amount of these products is limited. However, Jiahe will modify its procurement policy to increase the percentage of palm oil purchased with RSPO certification, and use the best effort to purchase coffee and tea with no incidences of child nor forced labor as required in IFC Performance Standard 2 (ESAP #6).
