Extract of SUBCONTRACTOR Social Report Analysis

Extract of SUBCONTRACTOR Social Report Analysis
Since January 2012, Subcontractor
began to give us a Monthly Social Reporting (Monthly
Scorecard), which contains the 8 aspects of Corporate Social Responsibility (CSR):
 Employment,
 Turn-over and absenteeism
 Remuneration
 Health and safety
 Working time
 Training
 Social dialogue
 Productivity
In each Social Reporting, you can find a tag “Monthly Balanced Scorecard (BSC)”. If a matching
number is found, the BSC will automatically generate the results. It helps you to understand the main
indicators that we used to measure the CSR performance in the company, and the formulas can help
you know how we calculate the results.
According to the Social Report of Subcontractor
and the other documents provided by
Subcontractor , we analyzed the social report and assessed Subcontractor CSR performance, and
gave Subcontractor an analysis of social report each month, in order to help Subcontractor to
improve his CSR performance.
The following is the Social Report Analysis for the month of January. We used the data of January
2013, compared to all the results given in 2012, in order to measure the CSR development in
Subcontractor , since we implanted the project.
RESSOURCES HUMAINES SANS FRONTIERES
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I.
Employment
1.1 TOTAL HEADCOUNT & MIGRANT WORKERS
Subcontractor remains a relative stable number of employees. The number of employees are 144 in
January, compares to 144 in the last November. We found that, in the peak season (April to June),
Subcontractor had 166 – 179 employees, which is 20 to 30 employees more than the other months.
Besides, the number of employees has kept at a stable level.
But for the migrant workers, it remains a problem. When we began the social audit in Subcontractor
in 2012, we have found that the major workers in Subcontractor (80%) are immigrants. And as we
follow the monthly social reports, we can see that the migrant workers constitute a high proportion
of workers in Subcontractor , and these migrant workers generally came from the temporary work
agencies (Agency for
foreign
workers
Outsourcing
1,
AGENCY FOR FOREIGN
150
93
94
100
50
0
RESSOURCES HUMAINES SANS FRONTIERES
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130
108 113 103 103
104 117 111
93
90
WORKERS 2 and «Agency» for local worker). The proportion of migrant
workers has slightly decreased: from 65.96% in November 2012 to 62.5% (90 migrant workers) in
present.
As we mention in our previous monthly social report analysis, this imbalanced and dependence of
outsourcing agencies will result in difficulty for Subcontractor to have a sustainable personal policy,
which is not good for the sustainable development of the company. Besides, the working conditions
of migrant workers drew attention by the international organizations, it is important to give an
assessment to these employment agencies, to ensure that the employment agencies have followed
the legal recruitment process. Otherwise, it could bring huge risks to the workers, company and the
clients.
Recommendation: Cut down the number of migrant workers gradually. Implant a sustainable human
resources management strategy which is in line with company policy.
1.2 RELATIONSHIP WITH EMPLOYMENT AGENCIES
In January 2013, Subcontractor has modified the “factory operator outsourcing agreement” with
Agency for foreign worker 1 and AGENCY FOR FOREIGN WORKERS 2. The agreement has added the
information on “non-retention of passport”, “employment contract in local language” and “monthly
report” in the first part. Besides, the number of employees provided by the two agencies is clearly
defined (20 employees for Agency for foreign worker 1 and 40 employees for AGENCY FOR FOREIGN
WORKERS 2. The remuneration rate, working time has been modified, and every worker would have
a job description for their own positions.
In order to compare the modification in these two agreements, according to the two agreements
provided, we made a table to demonstrate the differences:
Title
Passport
Vendor
with
operators
Old agreement
N/A
contract N/A
factory
RESSOURCES HUMAINES SANS FRONTIERES
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New agreement
Vendor is not allowed to retain
workers’ passports without any
written consent from the workers
both in English and Burmese.
The employment contract must be in
English and Burmese and specify any
loan the workers should reimburse.
Monthly report
N/A
Salary payable to Basic salary: RM21 per day
factory operators
Fully attendance allowance:
RM52/month
No meal allowance
Overtime for rest day/Public
Holiday: 2 times of ORP
Working hours
Working Hours: 8 hours per normal
working day (Monday – Saturday)
6.00 a.m. – 9.30 a.m. ~ working
time
9.30 am. – 10.00 a.m. ~ break
10.00 a.m. – 3.00 p.m. ~ working
time
3.00 p.m. – 3.30 p.m. ~ break
3.30 p.m. – 6.00 p.m. ~ working
time
Absconding factory The Vendor is fully responsible for
operators
any absconding factory operators
and in such case(s), they will be
replaced with new factory
operators within 10 (ten) days at
no extra cost to Subcontractor Ind
but subject to the quota of
Subcontractor Ind.
Provide
workers N/A
with job
Payment of services
Normal Working Day (Monday –
Saturday):
8 hours + 3 hours overtime for
RM58 / RM60
Sunday & Public Holiday:
RM78 for day shift and RM81 for
night shift
Vendor is to fill in a monthly
indicator and to be returned to
Subcontractor each month.
Basic salary : RM700/month for 8
hours per day;
Attendance
allowance:
RM100/month
Meal allowance: RM100/month
Rest day/Sunday: 2 times
Public Holiday: 3 times
Working hours: 8 normal working
hours per day
Day shift: 8 a.m. – 5 p.m.
Night shift: 8 p.m. – 5 a.m.
N/A
(…) Subcontractor
will not
discriminate migrant workers with
wages and terms of employment.
Normal Working Day (Monday –
Saturday):
8 hours/day for RM58.5/RM60.5
Extra
overtime:
RM6.5/hour/operator
Sunday / Rest Day:
RM93.1 for 8 hours of day shift, and
95.1 for 8 hours of night shift
Extra
overtime:
RM8.65/hour/operator
Public Holiday:
RM127.75 for 8 hours of day shift
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and 129.75 for 8 hours of night shift
Extra
overtime:
RM13/hour/operator
Job description
N/A
Subcontractor Ind is obligated to
provide a detailed job description to
the factory operators.
Recommendation: The minimum wage has applied by the labor law in Malaysia since January 2013.
The workers in Malaysia would receive minimum wages of RM 900 (for Peninsular Malaysia) and
RM800 (for Sabah and Sarawak). While the basic wage in Subcontractor is RM700, it has to add the
meal allowance and attendance allowance to meet the requirement of RM900. It is not fair for those
workers who do not eat in the factory, and those who are absent for one day; in that case, they can’t
reach the “minimum wage” required by law. It is recommended to increase the basic wage to the
minimum standard.
The “factory operator outsourcing agreement” of «Agency» for local worker is not communicated. It
is better to sign the agreement with all the employment agencies that you work with.
…..
II.
Remuneration
According to the pay slip provided by Subcontractor , we found that the content in this pay slip is not
complete. The basic pay is noted RM899.99 in the pay slip, but the basic wage indicated in the
agreement with the agency is RM700. The allowance in the pay slip does not specify the “meal
allowance” or “attendance allowance”.
The overtime part is not well organized. The first line “1, 0 TIME” doesn’t exist in the agreement, the
minimum rate for overtime is 1.5 times. It has to verify why there is “1 hour” calculated in the
overtime column. When we calculate the total of overtime, we found that this worker has executed
124 hours of overtime, which means 31 overtime hours per week. And 31 overtime hours plus 40
normal working hours, 71 working hours is largely excess the requirement of labor law (60 hours
maximum per week).
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Except that, there is no employee’s signature in this pay slip.
III.
Working time
IV.
Social dialogue
4.1 NOTICE BOARD
We noticed that Subcontractor
has built a notice board to
communicate with the employees. It could be a useful tool for the
internal communication. However, the content in this board are all in
English, since the migrant workers don’t speak English, it would be
impossible for them to understand the content in the board.
Especially, the major workers in Subcontractor are migrant workers.
In order to better communicate with the migrant, we suggest that
you should put the information also in Burmese or other languages
for those migrant workers to understand the content.
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4.2 HOTLINE
We saw that Subcontractor has put in place a hotline card in order to inform the workers on their
rights. It gives the workers the telephone number to contact when they have troubles in wage,
working hours and working environment.
However, it is important to know:
-
Who will answer behind the hotline? The
card doesn’t indicate the name, the
address
and
the
missions
of
the
organization.
-
How to ensure that the workers will not
be retaliated after they complaint? How
to protect the workers and keep the
information confidentially?
-
How Subcontractor give back the answer
to the workers?
-
Is the card of hotline available in the native language for migrant workers?
-
Subcontractor refers to the law about wage et working hours without information
about the content of the law and he contract with Subcontractor . It is important to
specify that the basic wage is 900 plus OT, and that the working hours are from 8 to
5PM. Above this hours, OT can be asked and workers cannot work more than 60
hours a week.
-
There is nothing about other issuers like “discrimination” and “harassment”, forced
labor
RESSOURCES HUMAINES SANS FRONTIERES
9 rue du Capitaine Escudié – 31000 TOULOUSE
SIRET 524 779 238 00012
Rhsansfrontieres.org
[email protected]
RESSOURCES HUMAINES SANS FRONTIERES
9 rue du Capitaine Escudié – 31000 TOULOUSE
SIRET 524 779 238 00012
Rhsansfrontieres.org
[email protected]
VI. Conclusion
After the analysis of social report of Subcontractor , we would like to present a simple chart to
demonstrate the progress of Subcontractor in January 2013.
Employment,
↑
Turn-over and absenteeism
↓
Remuneration
↔
Health and safety
↔
Working time
↑
Training
↔
Social dialogue
↔
Productivity
↑
↑: progress
↓: retrogress
↔: stay
RESSOURCES HUMAINES SANS FRONTIERES
9 rue du Capitaine Escudié – 31000 TOULOUSE
SIRET 524 779 238 00012
Rhsansfrontieres.org
[email protected]