Social Accountability Management System

SCOPE OF THE MANUAL

This manual address brief description of Social Compliance System implemented and practiced at M/s Coffee Bags Pty Ltd Situated at 16 Freight Road Ravenhall.
The Social Compliance System of M/s Coffee Bags Pty Ltd has been developed after referring the requirements issued by FSC-STD-40-001; clause 7. 

This manual addresses the M/s Coffee Bags Pty Ltd commitment to fair employment practices as set forth in this manual to ensure amiable, healthy and safe workplace environment for its workers.

This manual is encompassing requirements of Local Law and basic principles of thirteen 
international human rights conventions as below: 
 
1.    ILO Conventions 29 and 105 (Forced & Bonded Labor)
2.    ILO Convention 87 (Freedom of Association)
3.    ILO Convention 98 (Right to Collective Bargaining)
4.    ILO Conventions 100 and 111 (Equal remuneration for male and female workers for work of equal value; Discrimination)
5.    ILO Convention 138 & Recommendation 146 (Minimum Age and Recommendation)
6.    ILO Convention 155 & Recommendation 164 (Occupational Safety & Health)
7.    ILO Convention 182 (Worst Forms of Child Labor)
8.    The United Nations Convention on the Rights of the Child

1.2    Definitions

To understand the interpretations of Standard, Local Law and ILO conventions following frequently terms used are defined; 

1.    Organization: Business entity responsible for implementing the requirements of this standard, including all personnel (i.e., directors, executives, management, supervisors, and non-management staff, whether directly employed, contracted or otherwise representing the Organization).  E.g. TPP

2.     Child: Any person less than 15 years of age, unless local minimum age law stipulates a higher age for work or mandatory schooling, in which case the higher age would apply. If, however, local minimum age law is set at 14 years of age in accordance with developing-country exceptions under ILO Convention 138, the lower age will apply.

3.    Young Worker: Any worker over the age of a child as defined above and under the age of 18.

4.    Child labor: refer to any work by a child younger than the age(s) specified in the above definition of a child, except as provided for by ILO convention 138, article 7.

5.    Forced Labor: All work or service that is extracted from any person under the menace of any penalty for which said person has not offered him/ herself voluntarily or for which such work or service is demanded as a means of repayment of debt.

6.    Remediation of Children: All necessary support and actions to ensure the safety, health, education, and development of children who have been subjected to child labor, as defined above, and are dismissed.

7.    Forced Labor: A person refers to all work or service that is extracted from any person under the menace of any penalty for which said person has not offered him/herself voluntarily or for which such work or service is demanded as a means of repayment of debt. The Penalty here can imply a form of monetary sanctions, or physical forms of punishment such as loss of rights and privileges or restrictions on movement or employers holding of Deposits or identity papers (e.g. passports, NIC ). The intent of this definition is to understand all forms of forced labor, including the use of compulsory prison labor by private business entities, debt bondage or indentured servitude. The standard prohibits all kinds of forced labor.

Top management refers to people on the highest management level in the Company; people who report to the owners or the board of directors and who are accountable for the Company’s compliance with the requirements of this standard.
Requirements include industry standards, voluntary codes of conduct, union contracts, etc.
Commitment to comply should be evidenced by a process in place and functioning for management to identify and review all applicable laws.

Companies must comply with local and national regulations as well as the international Legislations. At a minimum, the Company’s social accountability policy should be written in the local language(s) commonly used by the Company employees to be considered comprehensible. If some employees are illiterate, the management is obligated to communicate the policy to those employees via alternative means, such as special training programs, graphics, and/or oral presentations.

SOCIAL POLICY
Implementation of the following elements on sustainable grounds is the core objective of Company’s Social Policy:

1.    Child Labor – No workers under the age of 15 years; minimum lowered to 14 years for countries operating under the ILO Convention 138 developing-country exception; remediation of any child found to be working.

2.    Forced Labor – No forced labor, including prison or debt bondage labor; no lodging of deposits or original identity papers by employers or outside recruiters.

3.    Health and Safety – Provide a safe and healthy work environment; take steps to prevent injuries, regular worker training for health and safety, system to detect threats to health and safety issues, access to bathrooms and potable water.

4.    Freedom of Association and Right to Collective Bargaining – Respect the right to form and join trade unions and bargain collectively, where law prohibits these freedoms, facilitate parallel means of association and bargaining.

5.    Discrimination – No discrimination based on race, caste, origin, religion, disability, gender, sexual orientation, union or political affiliation, or age; no sexual harassment.

6.    Discipline – No corporal punishment, mental or physical coercion or verbal abuse.

7.    Working Hours – Comply with the applicable law but, in any event, no more than 48 hours per week with at least one day off for every seven day period; voluntary overtime paid at a premium rate and not to exceed 10 and half hours per week on a regular basis; overtime may be mandatory if part of a collective bargaining agreement.

8.    Compensation – Wages paid for a standard work week must meet the legal and industry standards and be sufficient to meet the basic need of workers and their families; no disciplinary deductions.

9.    Management Systems – Facilities seeking to gain and maintain certification, must go beyond simple compliance to integrate the standard into their management systems and practices

M/s Coffee Bags Pty Ltd communicates their policies to all stake holders for sustainable growth, continual improvement and monitoring social performance.

PROHIBITION OF CHILD LABOUR

CHILD LABOUR POLICY

M/s Coffee Bags Pty Ltd neither employs nor supports the use of Child Labor nor individuals below 18 years by any of its suppliers. 
M/S COFFEE BAGS PTY LTD will discontinue business relations with such supplier who use Child Labor or continue to do so even after insistence by M/S COFFEE BAGS PTY LTD . for remediation of child labor.
M/S COFFEE BAGS PTY LTD will not employ any person below the age of 18 years in any of its departments. No contract labor under the age of 18 years is allowed to be engaged by the company.
M/S COFFEE BAGS PTY LTD does not support the use of Child Labor nor does it allow young workers below 18 years to be employed by any of its suppliers. 
M/S COFFEE BAGS PTY LTD will discontinue business relations with such supplier who use Child Labor or continue to do so even after insistence by M/S COFFEE BAGS PTY LTD ., for remediation of child labor.

Keeping in view the operational requirements of the Company, individuals below the age of 18 years are not considered for employment.
1.    Those desirous of employment at M/S COFFEE BAGS PTY LTD are required to produce any of the following documents for the purpose of age verification:
a)    Photocopy of National Identity Card (NIC).
b)    Photocopy of Age Certificate issued by the Certifying Surgeon in case of non-possession of documents identifies in ‘a’ and ‘b’ above.
c)    Photocopy of Educational certificate bearing “Date of Birth”.
d)    Photocopy of Domicile Certificate (if applicable).
NOTE: One of the documents presented for the purpose of age verification should essentially bear the incumbent’s colour photograph. However, The Company prefers the hiring of workers through national identity card.
2.    Company can exercise the right to verify age, education and experience and other personal information of the candidate from originals and even refer to the concerned organizations for this purpose. 

Planning:

M/S COFFEE BAGS PTY LTD has a defined policy and Remediation Plan, to check and control in existence of child worker in the company. The policy and plan are effectively communicated to workers.

a)     if any child worker found, It is Company’s obligation to protect the underage worker and enroll him in a long-term program (until reach in the age of 15 or exceed compulsory schooling age as required by national legislation, whichever is higher) so as to remove child workers from the workplace, and ensure they do not suffer further less of education. The Company would coordinate work with the child’s parents and local social service organizations (NGOs,community groups, etc.) if appropriate to ensure that adequate schooling or day-care facilities are available, or to serve as a catalyst to encourage the provision of such services by local government.

b)    The Company has a clear policy and mandate for supervising young (if any) workers to     ensure their jobs are low risk and their schedule permits them to continue schooling.

Responsibility:

3.1    HR/Admin personnel in collaboration with MR is responsible for:
i.    Proper communication of Company’s “Prohibition of Child Labor Policy” to the     respective Department Heads, line management and workers.

ii.    Organizing meetings and training programs to ensure that the policy is properly     communicated and understood at levels at M/S COFFEE BAGS PTY LTD . besides, the minutes of the meeting are recorded and circulated to all the participants as per proper     “Distribution Record List”.

iii.    In case of any incident reported either through suggestion / complaint box or directly by workers, HR/Admin personnel will immediately communicate the matter to the top management for speedy rectification and necessary action.

PROHIBITION OF FORCED AND COMPULSORY LABOUR 

1.    POLICY 

i.    M/S COFFEE BAGS PTY LTD does not use involuntary or forced labor – indentured, bonded or otherwise, nor does it support the use of forced or compulsory labor in any form including bonded, forced, and/or compulsory prison labor.

ii.    M/S COFFEE BAGS PTY LTD prohibits all relevant individuals from coercing employees in any way or unnecessarily limiting or impending employees’ freedom of movement.

iii.    M/S COFFEE BAGS PTY LTD does not require employees to submit originals of documents at the time of employment or during the period a person is employed with the Company.

iv.    M/S COFFEE BAGS PTY LTD does not do business with vendors/suppliers found to be using forced labor in any form.

2.    PURPOSE

To establish and maintain a documented system to monitor and control the hiring and existence of Forced Labor within the bounds of M/S COFFEE BAGS PTY LTD .

1.1    Standard Requirements 

a)    The Company shall not engage or support the use of forced labor nor the prospective candidates for employment required to lodge Deposits or identity papers (Originals) upon commencing employment with the Company.

b)    The employer has no rights or legal authority to retain employees original identification papers such as passports, birth certificates, work permits, residence permits, travel documents, or any other documents that might cause statutory complications to the workers and impede his/her freedom to travel or the ability to leave his/her job temporarily or permanently.

3.    SCOPE

This requirement of the standard applies to all departments of M/S COFFEE BAGS PTY LTD .

4.    RESPONSIBILITY
 
HR/Admin personnel and  MR is responsible for

i.    Proper communication of Company’s “Prohibition of Forced Labor Policy” to respective department heads, line management and workers.
ii.    Organization meetings and training programs ensure that the policy is properly communicated and understood, the minutes of the meeting are recorded and circulated to all the participants and its Circulation Record maintained.
iii.    In case of any incident reported either through suggestion / complaint box or directly through workers, HR/Admin personnel will immediately initiate necessary measures for speedy remedial actions.  

5.     PROCEDURE

M/S COFFEE BAGS PTY LTD will
a)    Maintains employment application or contract, to include a statement affirming that applicants are seeking employment voluntarily and are not under any threat compulsion or penalty, duly signed by applicant. Copies are maintained in the Employee’s Personal File.

b)    Obtains an affirmative statement from all labor brokers/agents if used by the M/S COFFEE BAGS PTY LTD to the effect that they are not supplying labor that is involuntary or forced within the meanings of this policy.

c)    In case of permanent employees, compensation is paid directly to employees and not to third parties.  However, in case of contractual workers payment is released to contractor for onward disbursement to respective workers in the presence of a responsible official from HR Department as per agreed rates. The payment record is signed by the recipient - the employee, and the payroll is authenticated by *Management Representative (MR) before its final approval by the CEO/COO/Director and (or) Dy. Chief Operating Officer Besides, pay-slips in English or Urdu (for low literate employees) are also provided to the concerned workers/staff for their personal satisfaction and record.

d)    At the time of hiring, Directors / HR and Admin personnel, M R and section heads  ensure that: 

i.    No bond is signed by the employee as a token for ‘continued employment’ with the     Company.  
ii.    The original documents are asked from the employees only for verification of duplicates / photocopies of documents submitted and after verification; original documents are returned to respective employees.  The HR Department staff stamps each duplicate /  photocopy as “Verified” before returning the originals to its respective owner.
iii.    During the time of employee’s interview, the prospective candidate is briefed about the fact that he/she is under no compulsion to join the Company and similarly he/she is free to disassociate from the Company as per his / her own free will at any time but undercompliance with the “Terms & Conditions” as laid down in the Letter of Appointment or the Employment Contract duly acknowledged and expressly agreed upon.

e)    HR/Admin personnel ensures that the overtime work is not imposed on any worker by his senior or the management against his free will. Workers who are frequently called upon to put in extra work hours; are under no pressure, threat or compulsion from their seniors or respective Department Heads / Contractors for ‘compulsory overtime’.

f)    In case an employee decides to leave the Company, the HR Department  explores the reasons behind his decision  to ensure  that he / she is not leaving under any unlawful compulsion, threats of any nature whatsoever  and any kind of  unfair treatment on job or off the job.  

g)     Departmental Heads are responsible for communicating, deploying and monitoring the practice of effectively prohibiting, checking and controlling the involuntary or forced labor at any level and through any means. 

h)    Special training sessions are planned and organized by MR in collaboration with HR Departments to disseminate the elements and purpose underlying this Social Accountability Standards with special focus on Company’s policies and procedures prohibiting involuntary or forced labor. 

i)    Suggestion box is placed in the facility.  If any employee wants to report any incident he / she can use the same without disclosing his / her identity. The matter will be investigated and resolved by the Company management after discussing the complaint with Chief Executive / Chief Operating Officer/ Dy. Chief Operating Officer or at Joint Work Counsel. 

j)    MR / HR and Admin. personnel ensures continuous communication between workers and management through designated members of different committees, the issues related to the workers are communicated to the management for effective corrective and preventive measures to ensure workers satisfaction.

HEALTH AND SAFETY

HEALTH AND SAFETY POLICY

a.    The management of M/S COFFEE BAGS PTY LTD reaffirms its commitment to provide safe and healthy workplace and endeavor to eliminate all possibilities of injuries and occupational diseases. 
b.    The management of M/S COFFEE BAGS PTY LTD is committed to guide and train its workforce to proactively recognize, evaluate potential chances of risks and train them to take appropriate preventive measures. 
c.    The management of M/S COFFEE BAGS PTY LTD is well acquainted with the fact that the Organization’s success is dependent on the dedication and cooperation of its human potential and expects all its workers to comply with the requirements of Health and Safety Policy, practices and routinely safety aspects to protect others lives against potential. 
d.    All departmental Heads and In-charges shall strive to protect their colleagues and subordinates from possible health and safety concerns.
e.    The management of M/S COFFEE BAGS PTY LTD puts the safety and well-being of its human potential on top of its business priority and determines to take all the possible safety measures during operational hours and thereafter, in this respect.
f.    The management of M/S COFFEE BAGS PTY LTD reviews the policy and the status of its implementation company-wide, on yearly basis. 
g.    M/S COFFEE BAGS PTY LTD is committed to comply with applicable Health and Safety codes and to reasonably accommodate both ‘smoking’ and ‘nonsmoking’ employees. For reasons of safety, public relations and other concerns, use of tobacco in the workplace is prohibited. However smoking area has been earmarked for habitual users of tobacco. Violation of Health and Safety norms deliberately or otherwise or any act subversive to normal discipline and human health are or work environment warrants disciplinary action.   

Standard Requirements 

i.    To assist in providing a healthy and safe work environment for employees, customers, and visitors, this is a top priority for M/S COFFEE BAGS PTY LTD .
ii.    The Company, bearing in mind the prevailing knowledge of the industry and of any specific hazards, shall provide a safe and healthy work environment and shall take adequate steps to prevent accidents and injury to health arising out of, associated with or occurring during the course of work, by minimizing, so far as is reasonably practicable; the causes of hazards inherent in the working environment. 
iii.    The Company shall nominate as occupational Health and Safety representative responsible for the implementation of all health and safety elements of this standard.
iv.    The Company shall ensure that all personnel receive regular and recorded health and safety training, and that such training is repeated for new and reassigned personnel.
v.    The Company shall establish systems to detect and prevent potential threats to health and safety of all personnel.
vi.    The Company shall provide, for use by all personnel, clean lavatories, access to potable water, and if appropriate, sanitary facilities for food storage.

The health and safety of all employees is the responsibility of the employer. The standard seeks to ensure that workers have a safe and healthy workplace, where adequate preventive measures are taken to minimize, and where possible, eliminate health and safety risks both the short and long term. Management is responsible for workplace conditions, and therefore, for ensuring that workers are able to perform their functions throughout their adult lifetime without actual or latent health damage. An effective system is key to the achievement of a safe and healthy workplace. In order to ensure its effectiveness, all employees should be regularly informed and trained.

RESPONSIBILITY

a.    MR is responsible for providing necessary guidance and monitoring compliance of all activities within the scope of this policy and availability of all documented evidence related thereto. 
b.    The Health & Safety Committee is responsible to act proactively in a truly objective oriented manner through strong strategic planning and translating plans into effective methodology for:
i.    Providing healthy and safe work environment to the workers.
ii.    Detecting potential risks and hazards associated with the job or present in the work environment which could cause harm / injury to the workers.
iii.    Proper communication of Company’s policy on Health and Safety. 
iv.    Organizing meetings and training programs to ensure that the policy is properly communicated and understood, the minutes of the meeting are then recorded and circulated as per Distribution Record.

PROCEDURE

Formation of Health and Safety & Environment Committee:         

a.    Health & Safety & Environment Committee is formed to induce workers to take active part in the workplace safety programs.
b.    Health and Safety & Environment Committee comprises members from management from workers.  Health and Safety Committee is headed by Manager (Compliance or Manager Administration).
c.    The minutes of the Health and Safety Committee meeting are recorded and distributed among the members.  One copy of the minutes is delivered to MR.  The meeting is generally held once in each quarter.

General Applications:

a.    M/S COFFEE BAGS PTY LTD . has all the employees completely insured as required under local laws through Insurance Company.
b.    Each employee is expected to obey safety rules and to exercise precautions in all work activities. 
c.    Employees must immediately report any unsafe condition to any of their seniors. Employees who violate safety standards, which cause hazardous or dangerous situations, or who fail to report or, where appropriate, to address such situations; may be subjected to disciplinary action even leading to termination of employment.

FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING

1. POLICY 

RESPONSIBILITY

PROCEDURE 

WORK COUNCIL

PROHIBITION OF DISCRIMINATION