Human Resources Policy and Procedures
Ramex has 278 full time employees, among which 95 women (34%). There are 98 daily workers used mainly for packaging during the peak season. Third-party contractors are mainly hired to carry out maintenance works, and fire equipment maintenance. There are about 70 vanilla collectors with individual contracts in Sambava and other zones.
Ramex is in compliance with the local labor code, which defines the various work categories, employee benefits, as well as minimum salary to be paid for each type of work. Ramex contributes to the ‘’Caisse nationale de prévoyance sociale’’(CNAPS) (insurance in case of work accidents). In line with legal requirements, daily workers are equally entitled to CNAPS. There is also a health insurance for all workers, independent of work category. Although in Madagascar, the minimum age for work is 15, Ramex does not hire workers under the age of 18 years.
Ramex has major international clients, which suppliers are required to prevent discrimination based on race, gender, ethnicity, nationality, or religion, and any form of physically or mentally abusive workplace practices.
The existing HR Policy (‘’Règlement intérieur’’) include working conditions, working hours, overtime, OHS, and disciplinary measures. As stated above under PS 1, Ramex’s Charter of Ethics contains provisions related to forced and child labor, all forms of harassment, and non-discrimination. There is no formal grievance mechanism, and no provisions related to daily and third-party workers. Ramex will ensure that its HR Policy is fully aligned with the requirements of this Performance Standard and will include specific requirements for daily and third-party workers, and a grievance mechanism (ESAP # 3).
Workers’ Organizations
As per local labor laws and regulations, all regular employees have the right to freedom of association. According to the Malagasy labor law, workers’ representatives have the following tasks: ensure that workers grievances are communicated to management and to the Labor Ministry; ensure implementation of OHS preventive measures; propose measures to improve work organization and productivity; and opine on potential retrenchment. At the time of the appraisal, there were 2 workers’ representatives in each agency who were undertaking these tasks. According to one representative, Ramex management is reluctant to meet with them, and shall be more proactive in organizing regular meetings to discuss employees’ issues.
Occupational Health and Safety
Ramex’s operations pose few OHS risks to workers. During due diligence, IFC identified that potential risks in the packaging facilities come from lifting, repetitive work, posture injuries, falls on slippery surfaces, and risks of fire. In plantations, potential risks identified by Ramex are related to transportation, insect and snake bites, and walking on uneven terrain and associated injuries. Ramex does not maintain records of accidents for reporting to management nor social security services. However, at the time of appraisal overall OHS performance did not seem to be a critical issue given the low risks. This will be addressed through management programs defined under ESAP # 1 described above.
Supply Chain
Ramex’supply chain is composed of 2 streams: RA certified farmers or traceable sourcing in Doany and Maroantsetra, where vanilla is bought directly from 1703 producers; and other zones where vanilla is bought through 70 vanilla collectors under contract with Ramex.
According to the US Department of Labor, children in Madagascar are engaged in the worst forms of child labor, including hazardous activities in agriculture, including production of vanilla. In 2016, Madagascar made a moderate advancement in efforts to eliminate the worst forms of child labor. The Government increased the number of labor inspectors from 4 to 15, launched a study with UNICEF to assess violence and exploitation of children in Madagascar, and expanded the implementation of the Government of Madagascar’s Code of Conduct for the Protection of Children. This Code has been signed by Ramex management. Ramex is planning to increase certified and traceable vanilla sourcing.
Also, international purchasers expect their suppliers to adhere to employment practices as stated in most of their Global Supplier Code of Conduct related to: no use of child labor; forced labor, slave labor, and human trafficking; working hours and wages; compensation; non-discrimination; and workplace conditions.
As outlined in ESAP #4, Ramex will develop and implement an internal audit system to assess, monitor, and mitigate risks of child and forced labor and significant safety issues in its primary supply chain. This will translate in undertaking a mapping of the supply chain, including identification of suppliers, identification of the potential significant adverse risks and impacts associated with the supply chains, and priorization of suppliers by level of risks. Tracking of suppliers’ performance will be integrated into the overall management system. If child labor, forced labor or significant safety issues are identified the company will work with the suppliers to take corrective action. In the event that corrective action is not feasible the company will change to suppliers that are managing the risk of child labor, forced labor and safety issues adequately.
