Working Conditions and Management of Worker Relationship. Dong Nai facility has currently 71 employees with a gender split of 48 males to 23 females. The new facility planned in Vung Tau is anticipated to have 120 – 160 employees once operational, expected in September 2023. The company has in place a nascent HR function (equivalent to scale) including a qualified HR manager, with internal HR needs based on compliance to prevailing national labor regulations. Entobel Code of Conduct includes a commitment to adhere to human rights and respect the needs of the workers.
The company states it is compliant to Vietnamese labor regulations. It is stated that every worker receives a contract of employment, and that all workers receive a basic induction, including a review of rights under the labor law prior to contract signing. Entobel has recently developed a set of policies and procedures related to labor and human rights management. These include Internal Labor Regulation, Freely Chosen Employment Policy, Non-Force Labor Policy, Child Labor Policy, Non-Discrimination Policy, Workplace Harassment Policy, Freedom of Association Policy, Recruitment Policy and Procedures, Employee Appraisal Performance Procedures, Labor Discipline Handling Process, Procedure of Promotion/ Demotion/ Transferring, Policy for Female Employee. A Regulation on Periodically Dialogue with Workers is also noted. In general, additional important HR policy and procedures required include a retrenchment policy/procedure, appeals process evident in any disciplinary, performance evaluation, results of the dismissal process, anonymous channels for grievance mechanism and for harassment issues. The scope of labor policies needs to extend to seasonal workers, labors of contractors and suppliers. There is also a need to include a process for communicating policies and supporting procedures to workers and for communicating access to grievance and complaints channels to outsourced labor and or third-party labors engaged by contractors. All communications on benefits and rights should be communicated to the worker prior to signing of contract agreement. As set forth in the ESAP#5, Entobel shall update its HR policies/procedures consistent with IFC PS2 objectives, and Vietnamese labor regulations. These policies and procedures shall also include zero tolerance for proven cases of workplace sexual harassment and gender-based violence and accessible to workers on request.
Working Conditions and Terms of Employment. The company strictly adheres to the Vietnamese Labor Regulation with all workers stated as engaged on full term contracts. A review of sampled contracts confirmed that the workers job description, lines of reporting/supervision, place of works, salary, times of work, and basic entitlements and rights are defined. The company does not include references to the HR policies and procedures, nor statutory entitlements to annual leave. Although the company is committed to adherence to national regulations, the contract of employment should include details on benefits and entitlements and references to relevant HR policies as these will define the entitlements and rights for the workers. As set forth in ESAP#6, Entobel shall revise its employment contracts to include, in addition to existing information, rights to statutory benefits and entitlements. All workers are paid in accordance with the minimum wage requirements for Dong Nai Province. Stated by the company, it does not engage seasonal nor temporary workers, all workers on full-time fixed term or open-ended employment agreements.
Workers’ Organization: As per the Vietnamese labor code, the company has a worker’s organization and the management meet with this group on a regular basis to discuss key issues, complaints and requests.
Non-discrimination and Equal Opportunity: The company firmly believes in the power of meritocracy. The company has a formal policy on non-discrimination and equal opportunity (ref. ESAP#5).
Grievance Mechanism: The company stated that it has an open-door policy and that all workers could bring grievances or concerns to managers or HR. Entobel has recently developed an Internal Grievance Policy and Procedures and the Whistleblowing Policy and Investigation Procedures. These will require updates to include a mechanism for anonymous grievances, as well as extend to employees and outsourced workers and or third-party workers of contracted groups operating within Entobel facilities and locations. Any grievances raised does not limit other legal channels or affect any future legal proceedings or process that the complainant may pursue. All grievances need to be recorded in a grievance log and included in reporting to senior management, include date received, nature, status, resolution, and feedbacks from the complainant. There should also be a separate channel for sexual harassment or GBV to senior HR, assurances of confidentiality, escalation, investigation, protection of the complainant from retaliation. As set forth in ESAP#7, the company shall update its Internal Grievance Policy and Procedures and the Whistleblowing Policy and Investigation Procedures that shall include options for anonymous grievances. This mechanism shall be open to all workers, direct,contracted and third party (as applicable).
Protecting the Work Force: Entobel has developed a Workplace Harassment Policy, as well as Sexual Harassment Policy at workplace for the workers to bring complaints in terms of sexual harassment, or gender-based violence related. Entobel shall develop a GBV and sexual harassment complaints channel that shall be confidential, allow for anonymous complaints to be received. This channel shall be supported by an internal process for receiving, reviewing and investigating based on a victim centered based approach. This channel shall be made available for all direct, contract and third-party workers, as required (ref. ESAP#5 and #7).
Occupational Health and Safety: The company has developed a set of OHS related policies management programs. However, additional OHS assessment and measures are required to cover the Company operation’s needs. These include but not limited to i) general risk assessment framework based on probability and severity and list of operational actions in the workplace that will be assessed against that framework; ii) risk assessment report to include explosive dust risks from operations (including good housekeeping and prevention of explosive dust risks), permit to works for high-risk activities (e.g., hot work, confined space, electrical maintenance, lock out tag out including rescue procedures/electrical work); iii) inspection of safety equipment (frequency) and risks related to equipment failures; iv) HazMat and procedures for storage, handling, disposing, transport and spillage; v) OHS requirements for cleaning or maintenance of equipment; vi) the emergency response plan (ERP) to be based on the risk assessment plan/report and include all reasonably foreseeable events, particularly, explosive dust and ERP response; vii) monitoring of OHS leading/lagging indicators (e.g., Lost Time Injury Frequency Rates - LTIFR) as well as Near Miss or Safety Observations Reporting and include root cause analysis for preventative measures. To ensure the company is compliant to minimum OHS standards, a Feed Mill operation should include procedures for: (i) good housekeeping procedures to minimize dust accumulation; (ii) minimum standards for Personal Protective Equipment’s (PPE); (iii) training needs and training programs (including first aid, and, as applicable, rescue for permit works); (iv) process for sanctions and enforcement; (v) minimum standards for workplace air quality and temperature; (vi) first aid treatment/process for recording and investigating accidents; (vii) warehouse operations and ensuring staffs are qualified in use of equipment’s such as forklift operations. As set forth in ESAP#8, Entobel shall undertake a detailed OHS review of its operations and update the OHS policy, risk assessment and management procedure, to ensure that: i) its operations and OHS practices and work instructions, are in line with IFC PSs, GIIPs, and WBG General EHS guidelines, including relevant PPE to be provided to all workers; ii) accident investigation includes root cause analysis approach, with continuous monitoring/reporting of OHS leading/lagging indicators, and implementation of corrective measures; and iii) the company annually benchmarks its OHS performance with representative Vietnam and international feed mill industry/sector performance numbers. This should cover all workers, including temporary and thirdparty workers.
Workers Engaged by Third Parties. The company engages contractors for preventative maintenance works and specialist cleaning operations (such as cleaning out by-product storage silos). The company has an informal approach of requiring contractors to come from experienced companies and be at a minimum certified with ISO 45001. Entobel requires construction contractors (at a minimum) to sign agreements to comply with minimum standards for OHS and national labor law, including: i) contractors must submit an OHS plan for approval prior to operations being initiated; ii) implement required work safety needs (in accordance with national regulations); iii) accept responsibility for supervision of sub-contractor safety; and iv) report on work safety management performance. Entobel has no formalized process for setting minimum standards for labor, and OHS needs to contractors, nor in communicating needs, evaluating contractor’s ability for compliance nor monitoring. Although the requirement is in place there is no documented process in place to support monitoring of contractor OHS or labor performance and approaches are fully reliant on the EPC. (ref. ESAP#3).