At the time of the appraisal, the company employed over 2,700 people with 865 people in its Ghana operation (including project-related construction and installation staff). 90 of these are Chinese nationals; the remaining 775 are split between 581 full time and 194 temporary workers. Such workers are a mixture of construction workers and those involved in non-technical operations, including loading/unloading, etc. The company expects the percentage of temporary workers to drop from the current value of 22% to between 10-15%. Thirty-three of the 865 workers are female. Like in Ghana, Kenya operations has a workforce of 850 people, of which 300 are temporary workers, 100 Chinese nationals and approximately 5% women who form the bulk of packaging and sales teams. The Senegal operation currently employs about 1,000 local staff. Chinese employees are primarily in the technical / supervisory roles. Local nationals are being incorporated into the management structure and are being capacitated to undertake such roles and responsibilities. Whereas exact numbers are not yet available, given that each plant will be ostensibly the same, total employment, upon completion of all proposed plants (including new recruitment at Senegal, and new plants in Cameroon, Mozambique, DRC and Zambia.pan-Africa employment is expected to be in the order of 6,300 people.
Human Resources Policies and Procedures
In Ghana and Kenya, the company has put in place a policy and procedures manual (the KeDa Ghana/Kenya Ceramics Company Limited Employee Handbook). The contents include matters of equal opportunity and commitment to diversity, conflicts of interest and confidentiality, recruitment and employment relationship, workplace safety, workplace guidelines and employee benefits (including workers compensation, accommodation and provision of food to workers). The handbook includes company policies and refers to the applicable Ghana and Kenya labor law and regulation.
The handbooks make explicit reference to prevention of sexual harassment. The handbook describes in detail what could constitute sexual harassment and the procedure to follow if an individual believes that they have been subject to sexual harassment or that sexual harassment has been seen to have occurred elsewhere in the workforce. They also outline the procedures with regards to handling of other complaints and/or suggestions. Specifics on hours of work, time recording, overtime, contract terms, disciplinary procedures, termination practices, leave, salaries and bonuses, deductions, paychecks are provided. The handbook contains two pages to be completed by the employee, that acknowledges receipt of the handbook and the harassment policy. The signed pages are kept in the employee’s personnel file. Awareness of the company’s policies and procedures will be extended to those engaged on a temporary basis at the company’s premises, to include those involved in construction, to ensure all who work for or on behalf of the company comply with the policy on sexual harassment. This is addressed in the ESAP in item #3.
The company has a training and development policy at group level, the stated aim of which is to set out measures to support objectives in relation to staff training and development, and the responsibilities that staff at all levels have to ensure development of a strong culture of learning and continuous development.
Broadly, the company’s HR policies and procedures are consistent with the applicable local labor laws and the requirements of IFC PS2 in the countries where it currently operates.
The company will use its existing HR manual template as part of the corporate ESMS that will subsequently from the basis of a corporate HR manual, allowing for and promoting compliance with, the stricter requirements of either national labor law and regulation or PS2 in all countries where it will operate.
Freedom of Association and Grievance Mechanism (GM)
There are no workers’ union at the plants in Ghana and Kenya at present. Both Ghanaian and Kenyan labor laws do not preclude unions.
The Employee handbook includes a section on GM, which mirrors the national laws procedures. In Kenya, the company has formed an employees’ committee, which among other terms of reference, hears workers disciplinary issues. In Ghana, a total of twenty complaints have been received during the 6 months prior to the appraisal and were addressed using the GM. Issues raised included clarification re wage payments, working hours, etc.
Considering the large number of workers and lack of a union, Brightstar will develop and publicize explicit language regarding freedom of association, as would be allowed under national law. This is addressed in ESAP item #4.
Also, Brightstar will implement a formal system for employees to raise grievances anonymously, for example, through a dedicated email address or suggestion boxes to file confidential grievances, without the risk of reprisals, and according to other requirements of IFC’s Performance Standard 2, including aspects such as sexual harassment. The grievance handling procedure will also articulate how the grievances will be handled and resolved; and outcomes communicated to all employees. This procedure will be applicable to all existing and new employees, third-party staff, and shall form part of the HR policy and other relevant documents and shall be communicated extensively to all the beneficiaries (ESAP#5).
Protecting the Work Force
Neither child labor or forced labor is utilized by the company. Whereas minimum age for admission of children into employment is 15 in Ghana, the company does not employ anyone under the age of 18 as per its own HR policy.
With regards to possible child labor in the supply of raw materials, the 2018 List of Goods Produced by Child Labor or Forced Labor (Bureau of International Labor Affairs, U.S. Department of Labor) does not show those materials required in the manufacture of ceramic tiles in Ghana as being associated with either child or forced labor. Further, the company references a policy prohibiting either child or forced labor and it was stated that the purchasing department (who is responsible for procuring raw materials) conducts random checks while visiting suppliers. Whereas sand is listed in Kenya in the above publication as being associated in general with child and forced labor, IFC was informed that suppliers to the company’s operations are subject to NEMA approval and bi-annual environmental and social audits; likewise, as in Ghana, the purchasing department manages the supply of raw materials so oversight is undertaken to ensure the company does not procure from entities engaged in child or forced labor.
See comment below (under Supply Chains section) and associated ESAP item re integrating E&S norms and regulations into procurement agreements on a corporate wide basis. In addition, a summary of review of raw material suppliers by country will be reported to IFC in the annual monitoring report.
Third Party Workers
Major construction was underway at both Ghana and Senegal locations (e.g. concrete work, erecting steel structures, etc.), being undertaken by the engineering, procurement and construction (EPC) contractors and the sub-contractors employed by them. During a walkthrough of the sites, several poor practices regarding OHS were observed; for example, working at heights without proper fall prevention measures, a lack of personal protective equipment (PPE) such as gloves or steel-toed boots when laying rebar and pouring concrete. The company will develop and then implement a contractor OHS management plan that will increase the rigor, and enforcement, of its OHS oversight with regards to such workers. This plan will be disseminated to all operations within Africa and shall be an important condition in the future contracts issued. This is addressed in the ESAP item #6.
Workers Accommodation
The site visit to the Senegal plant included worker accommodation as provided to non-Chinese construction workers (generally male laborers). Whereas IFC did not enter the accommodation (they were occupied at the time of the visit) they appeared to be sub-standard (i.e. lacking proper ventilation). IFC was informed that they were temporary housing; regardless, the company will review the standard of housing to be provided to workers to ensure they meet the minimum standards found in the IFC/EBRD Guidance Note on Workers’ accommodation: processes and standards. The company will develop standard contract clauses defining minimum requirements for labor accommodation for EPC contractors for construction workers. This is addressed in the ESAP in item #7.
Supply Chains
The main inputs required in the manufacture of ceramic tiles are limestone, sand, clay, feldspar, water and additives (such as carbonates, silicates and flocculants). Some tiles are decorated using inks (inkjet spraying). Typically, 90% of raw materials are sourced from the country where the plant is located. For example, in Ghana, various quarries (13 in all), that were in existence before the plant was established, and located up to 300km from the plant, supply the raw materials.
The company often signs an exclusive purchasing arrangement with the quarry; a commercial practice to ensure a reliable supply of needed inputs. IFC reviewed a sample mining agreement. Whereas the agreement includes warranties and representations that the miner is legally and beneficially entitled to mine, there is no explicit mention of matters related to applicable environmental and safety laws and regulations pertaining to the operation of the quarries. Whereas current suppliers in Kenya are subject to permitting and auditing, the company will include in future raw material supply agreements in all countries where the company operates reference to compliance with applicable environmental and OH&S laws and regulations and a protocol for auditing the suppliers through site visits as needed. This is addressed in ESAP item #8.
Occupational Health and Safety
The company has conducted risk assessment for its operations as well as has developed a documented training plan for OHS. The plan lists the department to receive the training, the date, the topic, location and name of the person to provide the training. Accordingly, supervisors receive hazard awareness training. Workers receive training on hazards identification and control measures, general safety rules and housekeeping, accident prevention, MSDS and specific risk training (such as related to electrical safety, hot work, working in high temperature areas, loading and unloading) and that targeting instances of unsafe behaviors or conditions previously observed. In addition, training on malaria prevention and road safety is provided. Similar risk assessments and training plans will be developed for all the future facilities. This will be undertaken as part of the requirement to develop and implement a PS1-compliant ESMS in the ESAP. (ESAP # 1)
Despite the above measures, several instances of excessive noise without workers using hearing protection, poor construction safety oversight (unsafe practices observed as noted above) were seen during the site visits in Ghana, Senegal and Kenya, where enforcement of use of PPE could be better. As recommended in the environmental audit report of October 2019 (that undertaken for the Kenya plant), Brightstar will enforce the use of PPE in all its plants.