Human Resources Policies and Procedures:
IEPL has a Human Resources (HR) & Industrial Relations (IR) department responsible for the overall management of all HR activities. The HR manager reports directly to the CEO of IEPL. The company has implemented various policies relating to employment and working conditions, including an HR Policy, Ethics Policy, Non-Discrimination Policy, Child Labor Prohibition Policy, Human Rights Policy and Independent Contractors Policy. Terms and conditions of employment, including alignment with national labor law requirements, are detailed in the Employee Handbook. The Employee Handbook details employment status and general principles, standard of conduct and work ethics, training and development, employee welfare, industrial and employee relations, salary administration, benefits and allowances, bonuses and awards, loans and leave. IEPL has well laid down procedures of grievance and discipline management.
In addition to the Employee Handbook the company has also implemented a Code of Conduct that details disciplinary action, conflict of interest, media statements, non-discrimination, harassment, alcohol and drug abuse, driving, environmental health and safety and data security. All direct employees receive a copy of the Employee Handbook and the Code of Conduct, as well as a signed letter of employment when they join the company. IEPL HR policies and procedures are aligned with IFC PS2 requirements.
Working Conditions and Terms of Employment
IEPL currently employs 499 workers, 389 (78%) of whom are from the Niger Delta area and of these, 121 (24 %) are ‘Indigenes’ of the 6 host communities. IEPL has 41 women direct workers. In addition to the directly employed staff, there are about 602 contracted workers who provide services such as catering, cleaning, security, amongst others, of which, 74 are female staff. IEPL has instituted a scholarship program for undergraduate students where seats are reserved for women candidates to encourage female recruitment and their career development. IEPL has also committed to target females in the graduate training program during the next recruitment drive.
Workers are grouped into three types: Management, Senior Staff and Junior Staff. All employees are paid well above the minimum wage as stipulated in the National Minimum Wages (Amended) Act, 2011. IEPL regularly benchmarks the salaries and allowances According to these benchmarking studies, salaries and allowances in IEPL are higher than prevailing salaries and allowances in the Chemical & Nonmetallic industry. In addition, employees own 2.5% equity in IEPL and is self-managed by employees, through the Equity Share Cooperative Society Limited.
IEPL provides all direct employees with training opportunities to meet both career progression requirements as well as business objectives. The company has an onsite training center where various training programs are planned and conducted including workshops, seminars, on-the job training (mentorship), supervisory, middle management, pre-retirement/end of service and awareness (EHS) training. In 2019 the company completed a total of 15,060 training manhours, with an annual target of 3.64-man days per employee. To date, 8% of employees have achieved more than 3 promotions, 44% employees have achieved 2 promotions and 45% of employees have achieved 1 promotion career progression in the past 12 years.
Workers’ Organization
IEPL respects the principle of freedom of association and collective bargaining which is enshrined under Section VII of the Employee Handbook. The company is also committed to recognizing Unions / Workers’ Associations in accordance with the Trade Unions Act and implements requirements in this regard.
Currently 94% of all company employees are unionized, with junior employees and contractors represented by the Nigerian Union of Petroleum and Natural Gas Workers (NUPEGN), while senior employees are represented by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN). A position for female representation has been created in the constitution of both unions. All terms and conditions of employment are regulated through existing (2020-2021) Collective Bargaining Agreements (CBA) with NUPEGN and PENGASSAN respectively. The CBAs cover recruitment and placement of new junior staff, probationary periods, training policy, medical policy, grievance management, disciplinary procedure, hours of work, leave, loans, allowances, bonuses, benefits, severance and dry rations.
Non-discrimination and Equal Opportunity
As detailed in the Non-Discriminatory Policy and reiterated in both the Code of Conduct and Human Rights Policy, the company upholds a policy of non-discrimination and equal opportunity in all employment and organizational activities. This includes no-discrimination based on race, color, age, sex, religion, disability, ethnicity, national origin, regional origin, marital status nor any other legally protected status. The practice of non-discrimination is extended to customers, suppliers, service providers and business partners. As detailed in the Human Rights Policy, all recruitment is carried out in a fair, equitable and consistent manner.
Child / Forced Labor
The minimum age for employment in Nigeria is 18 years, and the Company complies with national law in this respect. As per the company’s Child Labor Prohibition Policy, and emphasized in the Human Rights Policy, IEPL has a zero-tolerance approach towards any child, forced or bonded labor. This policy includes prohibition of employing any person under the age of 18 years. All employees’ age is documented and maintained for verification purposes. The contracted personnel will also be required to be older than 18 years. Furthermore, in compliance with the local requirements as well as IFC PS 2 there is no forced labor in either its own or contracted operations. IEPL will conduct periodic monitoring to ensure contractors compliance with these aspects.
Management of Contractors and Third-Party Workers
The evaluation, selection and registration process of third-party contractors is the responsibility of the department requiring the services. This process includes the vetting of a companies’ adherence to relevant Nigerian legislation, including the Labor Act, Trade Unions Act, Minimum Wage Act, and pension Reforms Act. IEPL anticipates, one contractor to be the engineering/procurement (EP) contractor and a second one to be the construction (C) contractor. Due to the ongoing projects at the site, there are few good construction contractors already at site out of which one of whom will be selected as the construction contractor. The company is currently completing the final selection for the EP contractor. The EP&C contractors will be chosen based on their demonstrated ability to comply with international standards and safety practices codes.
As per the Independent Contractors’ Policy, IEPL requires all workers engaged by third parties to comply with the company’s guidelines as detailed in the Employee Handbook, grievance management mechanism, and all relevant policies including IFC PS2. In addition, as per the MoU with the host communities, all third-party contractors are required to maintain and implement a Community Affairs, Safety, Health and Environmental Standards (CASHES) policy.
The workforce during construction is anticipated to reach a peak of around 300 personnel, who will be hired through the construction contractor. The company is committed to source the majority of construction workers from the surrounding areas as per the targets established in the MoU with the Host Communities (see description of MoU under PS4). As per the MoU, IEPL allocates a certain number of positions to each host community as well as to the representative youth groups to ensure sourcing from each of the communities. Each of the communities then puts forward potential CVs (more than the allocated number) and the construction contractor/ IEPL HR (for construction and operation respectively) selects the most appropriately skilled candidates from each group.
As specified earlier, as per ESAP Action No. 3, IEPL will require construction contractors to develop E&S plans and provide adequate organizational structure comprised of qualified labor, EHS, and community engagement professionals on-site throughout the construction phase; and the corresponding as well as a Demobilization Plans (see ESAP Action No. 4.) The contractors will be required to meet national labor legislation, IEPL’s Human Resources Policies and Procedures, the conditions of the MoU with Host Communities and the relevant requirements of IFC Performance Standard 2. IEPL will include these provisions in their contracts and will monitor the implementation of these requirements on an ongoing basis.
As described above, terms and conditions negotiated through the representative unions and associations and all other labor requirements will be included in the construction contractors’ contractual clauses along with the relevant EHS clauses (see ESAP Action No. 5.) IEPL will monitor the performance of the construction contractors to ensure that labor and E&S conditions follow the contractual requirements and the Performance Standards. Monitoring will include regular audits, review of the construction contractors’ internal monitoring reports and documentation as well as review of grievances logged by the contractors and subcontractors’ employees.
Grievance Mechanism
IEPL has an existing employee grievance management mechanism that is detailed in its Code of Conduct, Employee Handbook as well as in the CBAs between IEPL and the two employee trade unions. The mechanism allows for formal and informal grievance submissions, as well as anonymous submissions, to an immediate supervisor that can then be progressively elevated to the Head of Section and HR Manager. Senior management and the respective trade unions can be consulted should satisfactory resolution not be achieved, or further mediation is required. Employees also have the option to elevate their grievance to the Federal Ministry of Labor and Employment, the Industrial Arbitration Panel and the National Industrial Court. IEPL grievance mechanism is aligned with IFC PS2 allowing for confidentiality in the process, assigning clear roles and responsibilities to address grievances and establishing process target timelines, as appropriate. This mechanism also have the necessary resources to address sexual harassment complaints.
IEPL has established various sub-committees to assist in the resolution of grievances related to a specific topic, including medical, transport, welfare and discipline. In 2020 IEPL received a total of 27 employee grievances relating to welfare, time and attendance, COVID-19, payroll, entitlements and benefits. All have been resolved with the exception of five grievances which are in the process of being resolved. As the proposed project will be implemented in the same industrial unit, the existing grievance mechanism will be extended to the proposed project.
Workers Accommodation
Currently, accommodation for the expatriate staff at IEPL is provided in apartment blocks on site premises, while the local staff reside in the surrounding areas and are provided with housing allowances. The same arrangements are anticipated for the proposed project and there is no anticipated need of additional expatriate staff.
During the construction phase, workers will be recruited from the surrounding areas. As the expected number of construction workers is not significant, IEPL will not need to provide or construct a temporary accommodation for workers and, it is anticipated that the construction contractor will pay housing allowances for them to reside in the nearby communities where sufficient infrastructure is available to accommodate this population.
Occupational Health and Safety (OHS)
IEPL’s design philosophy is to provide sufficient process safeguards to protect personnel, equipment and the surrounding communities. The company has a suite of programs, safety manuals and procedures, aligned with IFC PS 2, to identify and avoid work related risks. It also has the needed safety measures to prevent accidents such as only designated walkways, stairs, ladders; dedicated roads when entering or exiting work locations; appropriate warning signs; barricades or barriers for any potentially hazardous conditions. Also, the procedures are set to ensure that all accidents/incidents are identified, and the unsafe conditions and acts are reported to the plant manager or supervisor immediately.
As part of its operational safety approach, IEPL has a robust maintenance approach following good international practices that includes pre-defined preventive; as well as predictive maintenance checks and corrective maintenance activities as raised by the computerized maintenance database system and breakdown equipment outages. IEPL’s workplace safety officers patrol the site to identify and resolve unsafe acts (UA) and unsafe conditions (UC.)
IEPL’s fire safety department has dedicated qualified staff conformed by a Fire Chief supported by 37 fully trained dedicated fire personnel. The plants are equipped with infrared flame detectors and deluge system at the process plants, gas detectors at plant and tank farm, as well as smoke, heat, and beam detectors. In addition, it also has fire alarm & gas detection panels at all plant control rooms and buildings. The additional needed fire emergency response safety measures will be installed as part of the proposed project.
The company conducts periodic preventive maintenance of mobile, first-aid and fixed firefighting equipment/system including scheduled functionality checking and maintenance of fire & gas detection system and emergency communication system, and weekly emergency siren test, among others. It also conducts periodical emergency response drills in operational and off-site area as well as desk emergency response drills, assurance of compliance with drills recommendations, training for regular, contractor and security employees, fire risk assessment, review and updates as needed of standard operating procedures, etc.
IEPL has an on-site medical center equipped to deal with any medical emergency. It also has a medical team in house composed of a chief medical doctor, two resident medical officers, general and assistant nurses, a midwife, as well as physiotherapists, pharmacists, radiographers, lab technicians, 6 COVID isolation center doctors, 32 molecular lab pathologists, and laboratory technicians. It has two well equipped ambulances with trained drivers and paramedic personnel availability 24 x 7. If necessary, medical cases may be transferred to government or private hospitals in Port Harcourt. Prior to being appointed, all candidates are subject to a full medical examination and undergo annual medical examinations during Employment. IEPL also has specific health surveillance programs focused on workers exposed to potential work-related risks (radiation, chemical, ergonomic, etc.) to undergo frequent evaluations and close monitoring. IEPL’s occupational health program also includes trainings about ergonomics, heat stress, infectious/contagious diseases, biosecurity standards, immunizations, etc. and conducts working environment assessment and provide recommendations for improvement.
IEPL has an alcohol and drugs policy and additional general health related programs such as voluntary testing for HIV/AIDS and free anti-retroviral to workers and contractors.
Training
IEPL’s E&S management team maintains a comprehensive and structured environmental, health, safety and social training plan including HR aspects based the company’s approved policies, plans and procedures and workplace risk assessment. The plan includes aspects related to its ESMS, identification and evaluation of environmental aspects, good housekeeping and environmental health, environmental awareness, waste management, on-site emergency and spill contingency plan, and process safety management, among others performance and will be extended to the proposed project. The training is provided to all company’s permanent, contractors and service providers employees.