APPL Action Plan and Progress Update The Context APPL is committed to providing higher standards for living conditions for its workers and their families. When a number of serious social issues were alleged in the recent past in relation to APPL, our shareholder Tata Global Beverages (TGB) appointed an independent third party Solidaridad to make an assessment into the living and working conditions of the workers at the APPL plantations. APPL fully cooperated with Solidaridad in its independent assessment. Solidaridad presented the report along with action recommendations to TGB in the month of June, 2014. Based on a detailed review of findings of the Solidaridad report APPL is now pursuing a phased Action Plan. Guided by the action plan, an immediate project was constituted to improve living and working conditions at the 5 plantations in Cluster 1 (Hattigor, Nahorani, Majuli, Lamabari and Hathikuli). Funds have been allocated for the same and action on a number of areas in the cluster is being executed. Funding requirements and areas of work for the rest of the clusters have been mapped out. The following section outlines the action plan developed towards the implementation of the recommendations. It also provides an update on the progress that has been made so far. The Action Plan Action Areas In line with the recommendations of the Solidaridad assessment, the following areas have been identified for action under the plan • Housing • Conservatories, bathing units and drainage • Working conditions • Health and other welfare measures in APPL Estates • Restructuring of Tata Tea and shareholding • Review of sustainability standards in APPL Fund Requirements Requirement of funds for execution of the action plan are being worked out. Consultations on the funding proposals are on with APPL shareholders. Plantation Clusters As mentioned previously, the 25 plantations have been grouped into 4 clusters based on an assessment of need and region to optimize the resources and supervision. • Cluster 1: Hattigor, Nahorani, Majuli, Lamabari and Hathikuli • Cluster 2: Rungamuttee, Damdim, Batabari and Nowera Nuddy Tea Estates • Cluster 3: Kellyden, Nonoi, Sagmootea, Diffloo, Borjan and Lattakoojan Tea Estates • Cluster 4: Teok, Kakajan, Bhelaguri, Powai, Nahortoli, Achabam, Nahorkutia, Namroop, Borhat and Chubwa Tea Estates Action Areas and Progress Sl. No. 1 a. b. Solidaridad Recommendations Housing Number of Houses APPL needs to develop a road map towards addressing the 5% shortfall of houses Potential for building double floored houses needs to be discussed with stakeholders who have so far opposed that, and address the modern times realities House repairs APPL could develop a three years step-by step action plan for repairing the houses Action Plan Response Status Construction of new houses and kitchens will be undertaken to meet the assessed shortfall Construction of 12 units of houses and 191 units of kitchens completed in cluster 1 plantations. Construction of the rest of the units is being taken up in a phased manner Discussions in progress with the Government of Assam. Potential of double floored houses will be explored in consultation with Government and ACMS Repair and maintenance works of the identified houses and kitchens will be undertaken to address the shortcomings Smokeless Chulhas (Ovens) to be provided to address smokerelated health issues caused by existing design Repair works of 5864 units of houses have been completed in 2014. The rest of the houses and kitchens are being taken up for repair in a phased manner 2,580 smokeless chulhas (ovens) have been provided to worker houses and hospitals in Hattigor, Majuli and Nahorani. Provision for the rest of the families is being done in a phased manner Sl. No. Solidaridad Recommendations APPL should put in place a management procedure for housing complaints The quantum of budget allocations for repair works should be reviewed c Electricity supply Individual metering along with cluster metering should be implemented across all plantations Arrangement of supply of electricity from government electricity boards at residential rates should be facilitated across the plantations The user committees set up in several gardens need to be engaged and trained on good practices of energy saving Action Plan Response Status A uniform redressal system has been implemented in all estates, wherein every complaint is logged with a unique number and actions with time lines are recorded Budget allocations for repair works have been reviewed in light of enhancement requirements Action executed across all the plantations Provision of individual electricity metering will be undertaken across estates # Individual metering has been completed in 18 estates. Execution in the rest of the estates has been pursued with the authorities APPL will engage with the state electricity distribution authorities to facilitate the process across the plantations APPL will take measures to disseminate knowledge about good practices of energy savings amongst the worker families Budget allocations are being consulted upon with shareholders for approval # Memorandum of understanding (MoU) has been signed between Worker Committee, Assam Power Distribution Company Limited (APDCL) and estate management for supply of electricity # Billing for worker colonies is done at rural electrification rates of Government of Assam – much below the industrial rates Good practices of energy savings have been discussed with the user committees as well as at the EEC meetings APPL is collaborating with an NGO to promote use of solar lanterns amongst the worker families Sl. No. Solidaridad Recommendations Action Plan Response 2 Conservatories, bathing units and drainage a Unavailability of latrines APPL should explore ways to make provision of the required number of latrines based on an audit of requirements Construction of new latrines will be undertaken to meet the assessed shortage Construction of bathrooms will be undertaken Unusable latrine and bathing units need to be repaired Repair works of identified latrines and bathing units will be undertaken A sewage cleaning mechanism will be put in place to ensure cleaning and maintenance of septic tanks b Technical Flaws APPL needs to look beyond the UNICEF’s activities in Water, Sanitation and Hygiene (WASH) and diversify its engagement with other agencies to address the issue of technical flaws in the toilet systems Initiatives will be taken to address technical flaws in the existing type of toilets, in partnership with specialised organisations Status 146 new bio toilets have been installed. Construction of latrines planned in the cluster 1 plantations for the year 2014 is 1029 units. Construction of rest of the units is being undertaken in a phased manner The construction of 90 new bathrooms in Nahorani, Hattigor and Majuli has been completed. Rest of the bathing enclosures will be constructed in a phased manner 2817 units of latrines were repaired. Repair works of the rest of the latrines are being taken up in a phased manner A sewage cleaning mechanism has been put in place in the Cluster 1 estates, cleaning of sewage tanks has been completed Execution of the action in progress # Trials with two models of bio-toilets designed by DRDO and Stone India are being conducted # Engagement with Sulabh and Caparo groups is ongoing to determine long term solutions to sanitation issues Sl. No. c Solidaridad Recommendations Action Plan Response Status While cleaning up of the kuccha (non-cemented) drainage will be undertaken, construction of 18681 no of pucca (cemented) drains will be undertaken in a phased manner # Cleaning of kuccha drains has been completed across the plantations. Construction of 1314 RFT pucca (cemented) drains for Hattigor, Majuli and Nahorani (model lines) planned for in 2014 We recommend developing a project with Swatch water filters around safe drinking water for tea garden workers Provision of Tata Swach Water Filters for families will be made # The construction of the rest of the pucca (cemented) drains is being undertaken in a phased manner # 2570 units of Swach Water Filters have been provided to all houses in Hattigor, Majuli and Nahorani, rest of the units are being provided in a phased manner Specialised NGOs could be engaged to develop awareness among tea workers and motivate them to be pro-actively involved in these issues Specialised NGOs will be engaged to execute awareness building programmes amongst the tea workers and to motivate their participation in the cleanliness drives Drains APPL should set targets for constructing pucca (cemented) drains in phased manner. Until that is done, the kuchha (noncemented) drains needs to be repaired 3 a Working conditions Legal wages APPL is in full compliance with the law in terms of wages paid and there are no illegal deductions. Any change in wage component requires an industry wide solution. Hence, we recommend initiating a multistakeholder dialogue is initiated that would particularly focus on value and quality of non-cash components of wages APPL will keenly participate in any multi-stakeholder dialogue initiated # Seminar and discussion with workers titled, “Live well and Live Healthy,” to be conducted to identify and address issues regarding standards of living, nutrition, etc. in the tea estates. This is being discussed with the Assam Branch Indian Tea Association (ABITA) Sl. No. b Solidaridad Recommendations Status Formation of Estate Employee Councils (EECs) in the states will be revamped. It is targeted that all Estates will organise discussions on critical issues around welfare, health and sanitation, among others Action executed across all plantations # EECs are revamped with a participation of all work segments, 50% Women members, Union reps, all management # Discussions held on estate performance, community and worker issues, worker participation in exploring solutions, etc. All new initiatives discussed before implementation APPL will explore engagement with specialised NGOs to develop awareness and promote involvement of tea workers to address issues of urban migration and trafficking # TGB is one of the funding partners of the project announced recently by UNICEF and the ETP to improve opportunities for tens of thousands of children in tea communities in Assam and reduce their vulnerability to trafficking and abuse. The three year program will initially work with 350 communities in over 100 estates in three districts in Assam # Adolescent clubs (Muskaan Club) have been formed at 14 estates of APPL and will be formed in the remaining estates by December 2014. One of these clubs was initially trained by UNICEF. The trained volunteers are now training club members in other estates on spreading awareness in the areas of urban migration & trafficking, child marriage, girl child education etc. Unions APPL could form Estate Employees Council in each estate and meet at least once a month to discuss critical issues around welfare, health and sanitation, among others c Action Plan Response Migration of young girls Information tools like booklet and/or a video in local language be developed to provide knowledge about the work they are going to do in cities, their rights, terms and condition, and most importantly, the difficulties of living in a mega city. An association with a NGO to counsel the youth in tea gardens would be desirable Sl. No. d Solidaridad Recommendations Personal Protection Equipment APPL needs to invest in procuring high quality and yet locally suitable PPE, which could be standardised across all estates. APPL must come up with a plan of providing a wash station in each estate where the PPE could be washed and workers could take bath Duty roster of sprayers is not rotated at present. This needs to be done every three months to avoid continuous exposure to chemicals 4 Health & other welfare measures in APPL Estates a Doctors The doctors, especially visiting doctors, from other estates must maintain an attendance register depicting their availability Together with ABITA and DBITA, a yearly seminar could be organised for estate doctors of different estates. The best-case practices could be shared in these meetings. The skills of the doctors should be enhanced through special training on diseases which are common amongst the estate workers Action Plan Response Status Improved Personal Protection Equipment (PPE) has been provided to all the spraying worker squads along with provision of wash stations in all estates. Spraying squads have been imparted with training on the importance and use of PPEs Action executed across all plantations # Improved Personal Protection Equipment (PPE) has been provided to all the spraying worker squads along with provision of wash stations in all estates Change in IT payroll system has been implemented to enforce mandatory rotation of workers deployed on spraying operation to safeguard worker health and avoid continuous exposure to plant protection projects A system to monitor attendance and visits of estate doctors will be put in place in the estate hospitals and other healthcare facilities APPL, in partnership with ABITA and DBITA, to organise annual seminars for estate doctors on different estates to enhance special training on diseases common to estate workers # Spraying squads have been imparted with training on the importance and use of PPEs Action executed across all plantations Action executed across all plantations Action being executed at regular intervals # Medical Seminars in coordination with ABITA & DBITA for the Estate Doctors on relevant topics are being held # Medical Officers are being nominated for refresher trainings Sl. No. b c Solidaridad Recommendations Action Plan Response Status Dependents medical facility The APPL policy on the amendment of PLA 2010 pertaining to dependents should be adequately informed to the workers through Employee Councils The system of providing Medical Benefits to the dependents of permanent employees has been implemented Action executed across all plantations Nutrition The nutritional deficiency of the workers in most of the APPL gardens is visible without knowledge of medical science. An immediate solution could be to help the workers develop the kitchen gardens Closer monitoring of worker nutrition, as well as training of workers to develop kitchen gardens, will be conducted to improve and maintain worker health # 40 Child Health Volunteers have been sent on a special refresher course on child nutrition # New nutrition diet charts for crèches and hospitals have been implemented. The Calorific values have been revised from 400 KCAL to 700 KCAL. Awareness programmes at all Estates on relevant topics are being held # Project being undertaken with Solidaridad on a literacy program for all workers that would explain the benefits of a kitchen garden. As part of the program, knowledge is imparted on what crops to grow, the method, timing and agri practices Sl. No. Solidaridad Recommendations Action Plan Response 5 Restructuring of Tata Tea and shareholding a There was no evidence of APPL management forcing or coercing workers to buy APPL shares. However, there is a clear need to further educate workers on financial literacy to understand the value of their shares and how that could help them plan their life APPL will undertake financial literacy programmes across all plantations Status # A Financial Literacy programme has been conducted across all tea estates. Together with Tata Asset Management Limited and CRISIL, workers are educated about the benefits of savings and investments as well as about the shareholding programme # The share scheme and the dividend payout were explained to the worker shareholders in all the estates through an interactive session by APPL HR team # Format of pay slips has been modified to clearly indicate share loan repayments and dividends earned # Valuation of the shares to be conducted following determination of annual financial performance, and shareholders to be informed of Net Asset Value (NAV) on an annual basis to increase investment understanding and knowledge Sl. No. Solidaridad Recommendations Action Plan Response Measures to be undertaken to ensure ease of access of the dividends earned by the shareholder workers Status #A system to enable consolidated withdrawal and distribution of dividends at the estate level is being planned and designed with a national bank and an NGO. This will enhance ease of dividend withdrawal by shareholding workers # Provision of doorstep banking services through banking correspondence to expand banking access to shareholding workers is being explored # To enhance the decision making powers of the shareholding workers, a share exit option is being considered and placed before APPL board for consideration 6. Fisheries a In some estates there were contracts given to workers, which erroneously used phrases like “regular temporary employment in perpetuity”. Either, these workers are regularised and made permanent workers with all fringe benefits, or they could be given the government approved minimum wages for non-tea agricultural activities The concerned workers have been compensated with either alternate land or by provision of permanent employment to an alternate family member Action executed across all plantations Sl. No. Solidaridad Recommendations Action Plan Response 7 Review of sustainability standards in APPL a APPL has invested in getting its estates verified under Ethical Tea Partnership standard as well as SA 8000 standard. We propose that APPL and TGBL do a cost-benefit analysis internally so the value of associating with these sustainability schemes is known A simple, easy to understand guide is prepared for compliance for all APPL gardens by way of integrating different standards including the trustea Recommendation being reviewed There should be a dedicated person in APPL focussed on certification related issues Recommendation to be implemented b c 1 2 a b c General Recommendations TGBL could consider setting up an expert panel of internal as well as external stakeholders who could review and feed into their overall sustainability strategy in tea APPL should undertake measures to address undernutrition amongst the plantation workers in its plantations Any development framework to succeed in the tea plantation will need to set ambitious targets to achieve universal access to water, sanitation and hygiene TGBL needs to develop its own sustainability framework that could be applied across different commodities and different suppliers that lay down Recommendation to be implemented The recommendation is being reviewed by the TGB management Nutrition is one of the areas under the action plan. The initiatives undertaken by APPL in this area have been outlined above The initiatives being undertaken in water, sanitation and hygiene have been outlined in the action plan above. The recommendation is being reviewed by the TGB management Status APPL has developed standard that integrated requirements of International Standards first time such a tool designed customised to Tea Industry a the 11 the was the Senior APPL officials have been assigned to focus on certification-related issues Other Welfare Activities Going beyond the Solidaridad recommendations, there are a number of welfare activities that have been identified by APPL to be executed as a part of the action plan: • Mahila Mandal (Women’s Forum) is a platform led by women folk in the worker families that works towards enhancing awareness amongst the employees on topics related to health care, personal hygiene, sanitation, cleanliness, savings, alcoholism etc. Mahila Mandals have been reenergized across all plantations through regular monthly meetings • Godowns and canteens in the estates have been taken up for renovation • Renovation of the schools is being undertaken. Measures are been taken to improve the teacher student ratio towards improvement of the education delivery • Weekly off and permissible overtime limit has been built into the payroll IT system to ensure proper HR records are maintained • Facelift of the healthcare facilities have been undertaken in the Cluster 1 estates. The action will be extended to cover all other estate hospitals identified for enhancements • Evening OPD reporting at the Estate hospitals has been extended to 5 pm so that workers get adequate medical support through the day • The Creche timing has been extended. New toys have been provided to all creches at Hatigor, Majuli and Nahorani. The action will be extended to all other plantations Execution Timeframe Considering the quantum of fund requirements and diversity of work areas involved, the execution of the plan across the 4 clusters will be in a phased manner over a period of 5 years. The Way Forward APPL intends to extend the execution of the identified action in the remaining 3 clusters through a phased execution plan. To meet this end, APPL is pursuing the process of getting required approvals from its shareholders on the action plan and budgeted expenses. A mechanism has been constituted for review of the progress made in the execution. APPL will update its stakeholders on the progress made at regular intervals through its website.
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