Otosan employs about 11,000 direct staff in its HQ and plants, of which about 16% (over 1,700) are females. The Company’s investment program is expected to create 1,979 additional direct jobs and 151 contract jobs/temporary jobs. All production related activities are undertaken by direct employees. Contractor workforce is only used in non-production related activities such as security, cleaning, gardening, catering, housekeeping etc. (912 across all facilities). Work arrangements are typically based on permanent contracts, whereas short term staff (with six months to one-year contract) under same term and conditions might also be hired on limited basis for meeting flexible production demands in the automotive industry. Production is organized in two or three shifts depending on the needs of the section. Overtime work, when needed, is closely monitored and compensated according to local regulations.
Human Resources Policies and Procedures, Working Conditions and Terms of Employment, Workers’ Organization:
Otosan has robust policies and procedures in relation to human resources which cover, working conditions, health and safety, gender and equal opportunities, grievance handling, child labor, forced labor and freedom of association consistent with PS2.
Each employee receives a handbook clearly indicating the terms and conditions of the employment, rights and the benefits, requirements for following the Company’s EHS and ethical standards. All employees sign a code of conduct summarizing all workplace policies and requirements, accessible online at:
https://www.fordotosan.com.tr/documents/Ford%20Otosan%20Code%20Of%20Conduct%20and%20Ethical%20Rules%202019-10-06.pdf
All blue-collar workers are covered by the collective bargaining agreement between the Turk-Metal Union and Metal Industrialists Union (MESS). The most recent CBA was concluded on 29th January 2020 after a round of negotiations and will remain in place for two years, as publicly announced by the Company: https://www.fordotosan.com.tr/en/investors/announcements-detail/about-collective-labor-agreement.
According to union representatives, new agreement has met workers’ expectations in terms of wage raise and benefits. The agreement also includes private health insurance coverage for workers and their families.
Non-discrimination and Equal Opportunity:
Otosan has extensive and exemplary work on non-discrimination and equal opportunity, as expressed in their policies and led by staff having gender expertise. The Company is a signatory of UN Women’s Empowerment Principles (WEP) and the first member of Society of Women Engineers from Turkey, of which they established a branch in Istanbul. Female employees are observed in various sections of the shop floor, in production activities and progressively increasing, with the Company’s vision to have gender balanced employment. Female workers are assigned to suitable tasks throughout pregnancy and upon return, they have access to specific support such as lactation room and childcare subsidies. Both men and women are trained in topics of code of conduct, anti-harassment and discrimination. The grievance mechanism is suitable to capture harassment related issues and a psychologist is on board to assist with sensitive complaints.
Grievance Mechanism:
Otosan has formal and well-established grievance mechanisms allowing anonymous submissions. All direct employees and contractors can report grievances through hotline, e-mail or online forms. Additionally, employees report their grievances to union representatives who follow an escalation procedure for addressing workplace issues. If the issues raised through grievance mechanisms needs a systematic solution a `problem assessment and monitoring report` is prepared and followed up by relevant departments.
Occupational Health and Safety:
Otosan has competent health and safety experts assigned to plants and reporting to a senior health and safety manager appointed at corporate level. The health and safety department has three units: a health, hygiene and ergonomics unit, a safety unit and a fire safety & emergency coordination unit.
The Company conducts job hazard risk analysis and implements preventive and mitigation measures accordingly. Adequate personal protective equipment is provided to all the employees, commensurate with the job risk. Otosan has defined, power lockout, working at height, pedestrian safety, complex lifting and rigging, confined space entry and electrical safety as main OHS risks in the plants. These areas are strictly regulated with relevant procedures, measures and closely supervised by EHS team. Additionally, hot work permit system is implemented strictly to avoid any fire risks. The Company also reviews ergonomic conditions at each workstation and follows an action plan to improve worker ergonomics. Workers’ health is monitored prior to admission and followed-up on a yearly basis.
The production of commercial vehicles is based on high-tech systems for assembling of parts, which are partly produced at own facilities and others sourced from specialised auto-component manufacturing companies. Major pressing, stamping and welding operations in the body shop are carried out by fully automatized systems and robots. Painting process is also fully automated and takes place inside cabins that are not accessible to employees during the actual painting operations. Staff working in production lines of electric vehicles are required to go through electrical safety training.
All new employees receive safety training during induction, which is then followed by regular refresher training over the course of time and specific to the workplace risks and hazards.
Otosan plants overall 2019 year-end Lost Time Case Rate (LTCR), which shows the number of incidents that result in lost workdays per 200,000 working hours, is calculated as 0.13. This is below Ford of Europe overall plants average in 2019.
Workers Engaged by Third Parties:
All third-party workers (security, housekeeping, gardening, etc.) in Otosan are to respect and follow the labour and OHS standards as those followed by the direct employees, which is ensured by the procurement and OHS departments. Contractor workforce has access to the Company’s grievance mechanism. Any accidents or incidents associated with third party employees are also recorded and monitored. Accident rate of contractor workforce is very low as they are employed in non-production related activities. There are clear procedures to assess and monitor OHS compliance of short-term contractors on site that are required to undertake certain maintenance or construction works within the premises.
Supply Chain:
Otosan has a long and complex supply chain, typical to any automotive producer. It includes a total of 468 suppliers, 285 of which are domestic and 183 are international. Otosan follows the supply chain requirements of Ford Group, implementing the `Number 1 in Quality`(Q1) certification system for suppliers. Along with strict quality specs, this program includes environmental, health and safety and social requirements. Supplier audits for Q1 certification is implemented on an ongoing basis. Otosan also provides training to suppliers in human rights and work environment, gender equality, and environmental performance.
