The company currently employs about 360 employees – most of which are involved in picking operations in the warehouses and delivery. A typical warehouse has 25 to 55 employees.
HR Policy, Working Conditions and Terms of Employment: The company has a HR policy manual which has policies on various operational matters e.g. recruitment, payment of salaries, attendance and leave policies, separation as well as code of conduct. As part of the ESAP, the company will document and ensure implementation of specific policies on freedom of association, grievance mechanism, prevention of forced labor in line with PS2 requirements. Also, once the new policies have been included, the company will ensure their communication to workers through various means e.g. displays and awareness sessions.
The company has standardized employment conditions included in the written contracts of employment for each employee. The contracts describe the working conditions, terms of employment and benefits provided including probation period, wages, leaves, etc. The attendance is recorded through a biometric system.
Non-discrimination: The company’s code of conduct requires employees to ensure there is no discrimination based on gender, color, religion, culture, education, social status, disability, age, sexual orientation, family status or nationality.
Grievance mechanism: As set forth in the ESAP, the company will develop a grievance mechanism specifically for handling HR related grievances in line with the PS2 requirements. Also, the company will ensure communication and accessibility of the mechanism to all employees and third party workers.
Freedom of Association: The workers at the warehouses are currently not part of any union. As discussed above, the company will document and implement a policy on Freedom of Association in line with PS2 requirements.
Prevention of Child Labor and Forced Labor: The HR policy specifically prohibits hiring of anyone below 18 years for all roles except drivers and bikers where the minimum age for recruitment is 21 years. Age proofs for the employees are collected and maintained on file to prevent use of child labor. Salaries are paid on 7th of every month. As discussed above, the company will document and implement a policy on forced labor in line with PS2 requirements.
Occupational Health and Safety (OHS): As the main operations are receiving, loading/unloading and cleaning and packing of fruits and vegetables, the OHS risks (except fire safety, already covered above) are limited. The company provides first-aid boxes in the warehouses and the security team is typically trained in first-aid. To strengthen OHS management for its operations, as discussed under PS1 above, as per the ESAP, the company will develop an OHS management program which will at least cover provision and use of personal protective equipment (PPE) for workers (as required), injury prevention (due to slips, trips and falls and lifting/handling of materials), first-aid, regular OHS training, and accident/incident/injury reporting. For staff involved in deliveries, the OHS provisions will be described in the transport safety policy mentioned under ESAP and PS4.
Third party workers: No third-party workers are currently employed by the company. In case the company outsource services, including delivery, Chaldal should implement procedures to manage those employees under the principles of the PS2.
Supply Chain: The supply chain of the company can be divided into five categories – (a) Fruits and Vegetables; (b) Staples; (c) Packed Food Items and Personal/Baby Care Items; (d) Meat and Fish; (e) Household Cleaning items and Stationary.
The packed food items, FMCG and personal/baby care products are sourced from big local and global FMCG companies. The company typically has annual contracts with such companies. The staples like rice, pulses, sugar, spices, dry fruits, etc. are sourced from various traders. Fruits and vegetables are sourced from local agricultural produce market (wet market or
mandi
) in the night and delivered at one of the warehouses where these are cleaned and packed and dispatched to the other warehouses by the morning. The stationary and household cleaning items are generally slow moving and are sourced from local suppliers based on infrequent orders. The meat is sourced from local suppliers who supply it directly to the warehouses. The company also buys frozen fish from two suppliers.
Currently, based on the type of contracting relationships and volumes, the company does not have any significant leverage or control on its supplier base except the frozen fish suppliers. As per the ESAP, the company will add applicable requirements of IFC PSs for supply chain (i.e. no child labor, no forced labor, no significant safety risks/hazards and basic legal compliance) in the contracts signed with the key suppliers including fish suppliers and ensure their implementation through regular inspection of their operations.
The company shall also document the inspection reports ensure corrective actions/consequences in case of non-compliances.
For the future, the company will develop a supply chain policy which will include a risk assessment of the suppliers (with respect to abovementioned requirements), provisions in the contracts of the suppliers and regular monitoring of their operations. In case there are changes in the supply chain structure and contracting relationships, the company shall evaluate its supply chain and w
here there is a risk of adverse labor practices due to particular product involved or other relevant considerations, depending on level of management control, the company will introduce possible contractual, monitoring and compliance mechanisms to address the risk of inappropriate forms of labor in its direct supply chains.
