Report on the Implementation of the derogation to ... - Trade Websites

Final <strong>Report</strong>
RoO Derogation under the PACP-IEPA
injuries, coupled with union responses, indicate instances where employees do not feel their
injuries have been appropriately dealt with under the Workers Compensation Act 1987, as
claims have either not been filed or are yet to be processed.
• Performance incentives - Each cannery has systems in place for annual performance
appraisals. In addition, the salary structures include provisions for annual pay increases by
increment, based on favourable performance appraisals and affordability of the company
(i.e. if net profits are high enough). Presently, all three canneries are not implementing
performance incentive systems citing profitability issues. Hence, workers who have been
with the company in excess of one year and/or who are high performers may still remain on
the minimum wage. When discussing the potential for performance incentive schemes to
increase productivity levels, cannery representatives indicated that such systems work very
effectively in South-east Asian canneries, but in Papua New Guinean culture jealousies result
amongst workers when staff are singled out and given remuneratory bonuses for
exceptional performance. Bonus systems exist for attendance including gifts (e.g. umbrellas,
raincoats, cash) and recognition at the annual staff Christmas party.
• Workers Unions – SSTC and RDTC have independent workers’ unions established which are
officially registered with the Office of the Industrial Registrar (within DLIR) under the
Industrial Relations Act. However, the majority of workers interviewed indicated
widespread lack of interest or frustration with the ineffectiveness of these unions. In some
cases, workers also expressed concerns that being a union member might be viewed
unfavourably by management. As a consequence, membership numbers are currently
relatively low (reportedly around 300 members for each union), and as a result unions are
financially under-resourced (union membership dues range from K1.50-K
4.00/fortnight/worker). RD National Workers Union has a Memorandum of Agreement in
place with the company which is currently under re-negotiation and covers issues including
payment of transport and housing allowances, reduced night shift times, improved
maternity leave provisions and severance/finishing pay entitlements. South Seas Tuna
Workers Union does not currently have an MOA or collective bargaining agreement in place
with SSTC, however, it has engaged in ongoing negotiations with the company concerning
increasing pay levels above the minimum wage and the provision of housing and transport
benefits. Frabelle workers are yet to establish a legally registered workers union, but have
made several attempts in the past and have expressed interest in joining the Maritime
Workers’ Union. All three canneries have experienced strike action on several occasions
over the past few years. In the case of RDTC and Frabelle, strike action has largely related to
implementation of the minimum wage, while SSTC security staff forced a plant shut-down in
protest of a company decision to outsource its security services. In all cases, the strike
action was deemed illegal by the DLIR.
• Uniform deductions – Uniforms were formerly provided free of charge to workers.
However, all three canneries now have policies in place where workers pay a ‘security
deposit’ which covers a portion of the cost of their uniforms and is deducted from their first
pay. Cannery Management indicated that by attaching a monetary value to uniforms, it
deters staff from ‘losing’ uniforms. When uniforms were provided free of charge the
frequency (and associated costs) of uniform replacement was high due to workers not taking
responsibility for uniforms and giving them away to other people. Uniform deductions are
made for: shirts (K 8.00-10.00), pants (K 12.00); caps (K 5.00); gumboots (free – K 25.00);
cloth masks (K1.50) and hairnets (K0.90). 78
78 Workers are required to pay a ‘security deposit’ for the following items of uniform: RDTC - shirts, pants,
cloth mask, hair net; SSTC - gumboots, cap; Frabelle - cap, shirt, gumboots.
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