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

Final <strong>Report</strong>
RoO Derogation under the PACP-IEPA
• Transport – Prior to the minimum wage rate increase to K 2.29 in January 2010, all three
canneries provided company-sponsored transport to and from work for employees, as an
additional benefit. Following implementation of the increase in minimum wage, canneries
retracted this benefit on affordability grounds (from the perspective that with increased
wages, workers could afford to cover their own transport costs; and, from a cannery
perspective that the increase wage costs reduced the affordability of providing transport to
workers). Further, in the case of two canneries, spin-off businesses established with local
transport providers to provide workers’ transport were reportedly abused by the PMV
operators.
Workers, particularly those living considerable distances from canneries (i.e. over one hour
drive away), report issues with the lack of reliability and the high cost of transport. Female
staff also raised concerns about security issues associated with catching transport before
sunrise/after sunset. In light of these issues (and their related influence on absenteeism
levels), all three canneries reported to be re-considering the provision pick-up/drop-off
transport services for workers. In response to security issues, canneries have tailored shift
hours to ensure workers on day shift have adequate time to return home prior to dark. For
night shift workers, they are permitted early entry to the cannery compound before sunset
and may stay onsite after finishing their shift until sunrise.
• Housing – To cater for workers who live long distances from the cannery compound, RDTC
has constructed free dormitory accommodation on cannery-owned land in Maiawara (about
15 minutes from the cannery) for 100 workers. In partnership with local communities, RDTC
is also financing the materials for the construction of dormitories for rent to RDTC staff for K
30.00/fortnight. To date, five dorms/houses have been constructed which accommodate up
to 50 staff (5 rooms per house, 2 x workers per room). Frabelle and SSTC are also reportedly
considering options for providing housing assistance to workers.
• Expatriate workers – Despite aspersions cast by European industry and parliamentary
interests that PNG canneries are hiring large volumes of cheap foreign labour sourced from
Asia, 79 this is not the case. All unskilled/production level jobs are reserved for PNG nationals
under the Employment of Non-Citizens Act 2007. During cannery visits there was no
evidence of foreign labour employed in production-level jobs. As mentioned earlier,
expatriate workers are employed into management and high-level supervisory positions and
are generally of Filipino origin. In prior studies, there have been anecdotal reports of
mistreatment of local staff by foreigners, particularly verbal abuse/use of coarse language. 80
Cannery management representatives confirmed isolated incidences of conflict between
expatriate and local staff and indicated a zero tolerance policy for mistreatment of staff,
whereby in such instances, the expatriate staff member has been terminated, had their
foreign work permit cancelled and been repatriated from PNG. It is a requirement under
PNG law that non-citizen workers are proficient in English, Tok Pisin or Hiri Motu. 81 While
Filipino staff are generally proficient in English, frustrations have been raised by nationals
workers concerning the use of their native tongue (Tagalog, Visayan) in the workplace at
times.
• Grievance handling - Each cannery has policies in place for dealing with staff grievances.
Interviewed workers were well aware of the respective processes in place in instances when
issues arise (e.g. fighting, theft, complaints against other workers etc.). Generally, workers
first report to their immediate supervisor and then, if the issue cannot be resolved as this
level, the matter is taken to either the HR Department, Security Department or Community
79 For example, Fraga 2010.
80 Sullivan et al. 2003; Sullivan et al. 2005.
81 Employment of the Non-Citizens Act 2007.
Linpico s.a.r.l. Page 64