BOROUGE- 4 LLC

BOROUGE-4 PROJECT
IFC PERFORMANCE STANDARD (PS)-2
AWARENESS SESSION
OBJECTIVES
The main objectives of this program is to
provide information on IFC PS2 and increase
the awareness of labour and welfare
international standard.
Further to enhance HR and HSE
professionals in improving their knowledge in
decision making process and enable them to
communicate very clearly when discussing
labour and welfare issues.
TARGET AUDIENCE
‒ CONTRACTOR, SUBCONTRACTORS &
Lower-tier SUBCONTRACTORS HR &
Admin Professionals and Subcontract
Management Team.
‒ CONTRACTOR, SUBCONTRACTORS &
Lower-tier SUBCONTRACTORS HSE
Professionals.
‒ Any other interested parties.
IFC - AN INTRODUCTION
Five Agencies – One Group

World Bank Group

International Bank International International Multilateral International Centre

for Reconstruction Development Finance Investment for Settlement of
and Development Association Corporation Guarantee Agency Investment Disputes
WHAT IS IFC?

WHAT IS IFC.?

"The International Finance Corporation is an

international financial institution that offers
investment, advisory, and asset-management services
to encourage private-sector development in less
developed countries."

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IFC - AN INTRODUCTION

 Established in 1956 and owned by 186 member countries.

 The IFC is owned and governed by its member countries but has its own executive leadership and
staff that conduct its normal business operations.
 It provides loan and equity finance for business ventures in developing countries.
 Focus on private sector investments.
 Developing local financial markets.
 Infrastructure, education and food supply chain.
 ESG Bonds are on focus.
 Helps companies & financial institutions proactively demonstrate Environment and Social
responsibility.
 Addressing in climate change and ensuring growth infrastructure.
 IFC seeks commitment from the client to comply to its - Social and Environmental Performance
Standards.
 Invested more than $321 Bn in emerging and developing economies.
IFC ENVIRONMENTAL & SOCIAL PERFORMANCE STANDARDS
There are Eight (8) performance standards that the client is to
meet throughout the life of a IFC funded project.

1. PS 1: Assessment & Management of

Environmental & Social Risks & Impacts.
2. PS 2: Labour and Working Conditions.

PS 1 PS 2 PS 3 PS 4 3. PS 3: Resource Efficiency and Pollution

Prevention.
4. PS 4: Community Health, Safety, and
Security.
5. PS 5: Land Acquisition and Involuntary
Resettlement.
PS 5 PS 6 PS 7 PS 8
6. PS 6: Biodiversity Conservation &
Sustainable Management of Living.
7. PS 7: Indigenous Peoples.
8. PS 8: Cultural Heritage.
OVERVIEW OF PS 2: STRUCTURE

Working Conditions and Management of Worker Relationships

Protecting the Workforce

Occupational Health and Safety

PS 2: Labour
and Working
Workers Engaged by Third Parties
Conditions

Supply Chain
OBJECTIVES

Overview of PS 2 Overview of SUS-PR-002

1) To promote equality among the  Borouge Responsible Sourcing / Workers
employees. Protection Standard SUS-PR-002 is
developed in line with:
2) To establish, maintain and improve worker
o Applicable UAE Federal Laws,
management relationship.
o Borouge Sustainability Policy (SUS-
3) To protect workers, including vulnerable POL-001)
categories of workers such as children, o Borouge Ethics Policy (CG-POL-001)
migrant workers, workers engaged by
o Management of Contractor HSE
third parties, and workers in the client’s
(HSE-PR-ST05)
supply chain.
4) To promote safe and healthy working  The standard consists of three sets of
condition and taking care of health of the requirements:
workers. I. Workers Protection
II. Health, Safety & Environment (HSE)
5) To avoid the use of forced labour.
and
6) To promote compliance with national III. Ethics
employment and labour laws.
 The standard SUS-PR-002 comprising Ten
(10) focused areas, which comply with
objectives of IFC PS 2.
SUS-PR-002 Responsible Sourcing / Workers Protection Standard

SUS-PR-002 comprising Ten (10)

focused areas, which comply with
objectives of IFC PS 2.
SCOPE OF APPLICATION

Overview of PS 2 Overview of SUS-PR-002

The scope of SUS-PR-
Direct Workers: Workers directly
002 is equally applies to
engaged by the client.
CONTRACTOR,
Contracted Workers: Workers engaged SUBCONTRACTOR,
through third parties to perform work LOWER-TIRE and the
related to core business processes. SUPPLY CHAIN.

Periodic audits to ensure

Supply Chain Workers: Workers ongoing compliance to
engaged by the client’s primary suppliers. the Workers Protection
Standard (WPS).
OVERARCHING PRINCIPLE

Overview of PS 2 Overview of B4 Project

 Working Conditions & Management of Worker Relationship
PS 2 Requirement UAE Labour Law & SUS-PR-002
 The organization shall manage HR policies  SUS-PR-002:- all stakeholder shall implement the
and procedures consistent with the necessary systems & controls to comply with the
requirements of PS 2 and national laws. applicable UAE laws and regulations and its Responsible
Sourcing requirements, including procedures, training,
monitoring and auditing mechanisms.
 Provide clear and understandable
documented information to the workers
regarding their rights under national labour  UAE Labour Regulation: all new
and employment law and any applicable employment residence permit
applicants that fall under professional
collective agreements:
levels (Skill Level) three (3), four (4)
and five (5) of new Emirati Vocational
o hours of work,
Classification scheme must attend
o wages, Labour awareness session
o overtime, anywhere in the UAE.

o compensation, and  UAE Labour Law: the employment

Contract shall be made in duplicate, one
o benefits copy to be given to the employer and the
other to the worker, in accordance with the
templates specified by the Executive
Regulations of this Decree-Law.

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Working Conditions & Terms of Employment
PS 2 Requirement UAE Labour Law & SUS-PR-002
 Where an organization is a party to a  Under current UAE laws, restricts worker’s
collective bargaining agreement with a organization/union and workers have no rights of
workers’ organization, such agreement shall collective bargaining.
be respected.
 UAE Labour Regulation: The working conditions &
 Where collective bargaining agreements do terms of employment such as working hours, rest
not exist, the organization shall provide days, probationary period, wage agreed upon
reasonable working conditions and terms of including the benefits & allowances, the annual
employment. leave entitlements notice period, procedures for
terminating the contract are
 Identify migrant workers detailed in the contract.
and ensure that they are
engaged on substantially
 UAE Labour Law (Equality
equivalent terms and
and Non-discrimination): An
conditions to non-migrant
employer shall not
workers carrying out
discriminate in respect of
similar work.
works involving the same job
duties.
Working Conditions & Terms of Employment
PS 2 Requirement ADNOC Standard
 Implement policies for the quality and  The management of the accommodation and
management of the accommodation and provision of basic requirements are broad scope.
provision of basic services.
 It's being dealt with
 The accommodation services shall be requirement specified in
provided in a manner consistent with the ADNOC HSE-OH-ST07.
principles of non-discrimination and equal
 The implementation of
opportunity.
the requirements are in
conjunction with
 Workers’ accommodation arrangements
applicable UAE Laws &
should not restrict workers’ freedom of
regulations.
movement or of association.
 Periodic Camp HSE & Welfare audits are
performed by the COMPANY & CONTRACTOR to
ensure ongoing compliance with the requirements.
 ADNOC Unified team also conducts compliance
verifications through periodic independent audits.
Workers’ Organization
PS 2 Requirement ADNOC Standard
 If national law  Under current UAE laws,
recognizes workers’ restricts worker’s
organizations and organization/union and
collective bargaining - workers have no rights of
comply with local law. collective bargaining.
 Where national law substantially restricts  Alternative mechanism
workers’ organizations - do not restrict established.
alternative mechanisms, or influence or
control those mechanisms.  Employees are provided with an opportunity to
collectively or individually express their concerns
 Do not discourage workers’ organizations or and expectations through the established
collective bargaining, do not discriminate or mechanism.
retaliate.
 Engage with workers' representatives and  Grievances can address either directly or
provide needed information to allow for anonymously, including whistle-blowing, free from
meaningful negotiations. any threat of punishment or retaliation.
 Worker's organizations are expected to fairly  Worker’s concerns and grievances are collectively
represent of the workers. discussed in project welfare committee meeting.
Non-discrimination and Equal Opportunity
PS 2 Requirement UAE Labour Law & SUS-PR-002
 Not make employment  Equality and Non-
decisions based on the discrimination: UAE
personal characteristics Federal Law No. 33 of
unrelated to inherent job
(2021) Article (4)-1) &
requirements.
Article (4)-4)
 Basing employment relationship on the principle of
equal opportunity and fair treatment. SUS-PR-002:

 No discrimination with respect to any aspects of  "All employees are treated fairly and without
the employment relationship, working conditions & discrimination during recruitment and
terms of employment. employment."
 Take measures to prevent and address
harassment, intimidation, and/or exploitation,
 "All employees may perform their religious
especially regarding women. obligations without restriction or hindrance".

 When national law is not aligned with the  "There is no discrimination against employees with
principles of non-discrimination, then apply special needs or medical conditions unless it
principles to achieve objectives of non- impacts their ability to perform their occupation".
discrimination and equal opportunity.
Retrenchment
PS 2 Requirement UAE Labour Law
 Carry out an analysis of alternatives to retrenchment  Individual or collective
prior to implementing any collective dismissals. dismissals of workers
 In absence of a viable alternative, develop a are carried out in
retrenchment plan to reduce the adverse impacts on accordance with the
workers taking into consideration: procedures laid down in
o principles of non-discrimination, the law.
o consultation with stakeholders (worker's organizations and
relevant authorities), and
o compliance with local law, contracts, and bargaining
agreements.  When an employee dismissal or termination of an
 All outstanding back pay and social security benefits employment contract takes place, it will be
and pension contributions and benefits shall be paid pursuant to Article 43 of Federal Law 33 of (2021).
o on or before termination of the working relationship to the
workers,
o where appropriate, for the benefit of the workers, or  All the entitlements/ benefits of the worker are
o payment shall be made in accordance with a timeline agreed provided to the worker according to Article 51, 52
through a collective agreement. & 53 of Federal Law 33 of 2021
 Where payments are made for the benefit of
workers, workers will be provided with evidence of
such payments.
Grievance Mechanism
PS 2 Requirement ADNOC Standard
 Communicate Grievance  Grievance mechanism
Mechanism to workers is established as a
at the time of channel for workers to
recruitment. voice their HSE &
Welfare concerns
 Involve appropriate level
efficiently and
of management.
transparently.
 Address concerns promptly.  The grievance mechanism are included as part of
project HSE Induction program & well explained to
 Use a trusted and transparent process.
all employees during the project induction.
 Grievances can report either directly or
 No retribution.
anonymously, including whistle-blowing, free from
 Allow anonymous complaints. any threat of punishment or retaliation.
 Grievances are discussed during the welfare
committee meetings.
 Do not obstruct access to other judicial or
administrative remedies.  Grievances are logged in action tracking register
for follow-up & closure.
Protecting the Work Force
PS 2 Requirement UAE Labour Law & SUS-PR-002
Child Labour  "No children under the
 Consider: age of 15 years old or
o National minimum the minimum age for
age for work. completion of
compulsory education,
o Economically
whichever is the
exploitative
nature of activity.
highest, are employed
either directly or
o Hazardous work of the job.
indirectly.
o Interference with the child’s education.
o Child’s health.  "No children under the age of 18 are employed for
 Identify presence of all persons under the age hazardous, dangerous or exhausting work, work
18, conduct risk assessment, do regular detrimental to their health, or after 8 pm.
monitoring of health, working conditions, and
hours of work.
 "Children under the age of 18 do not work
 Follow applicable laws. overtime".
Protecting the Work Force
PS 2 Requirement UAE Labour Law
 Do not engage in  Article (14) Clauses (1):
any kind of “An Employer may not
involuntary or use any means
compulsory labor, susceptible of obliging
such as indentured or forcing the Worker,
labor, bonded labor, or threatening him with
or similar labor- any penalty, to work for
contraction him, or forcing him to
arrangements. do a work or deliver a
service against his will”.
Occupational Health & Safety
PS 2 Requirement ADNOC Standards
Consider
 Occupational health &
 Inherent sector risks safety is broad scope, &
 Physical, chemical, the requirements and
biological, & radiological compliances has been
hazards. detailed in a separate
 Specific threats to women. document HSE-GA-
ST05 "HSE
The client needs to address the following areas in Management of
GIIP & WBG EHS Guidelines. Contractors".
o Identification of potential hazards to workers,
particularly those which are life threatening.
o Provisions of preventive and protective
measures.
o Training of workers.
o Documentation and reporting of occupational
accidents, diseases, and fatalities.
o Emergency prevention, preparedness, and
response arrangements (PS1).
Workers Engaged by Third Parties
PS 2 Requirement ADNOC Standards & SUS-PR-002
Apply to workers engaged (through third parties)  Pre-qualification, tendering and monitoring
to perform work related to core business process of Contractor & supply chain.
processes. Core include production or services
processes that are essential:
 A systematic process is detailed in ADNOC &
 Client will take commercially reasonable efforts Borouge standards to ensure the compliance with
to ascertain that the third parties who engage the requirements.
these workers are reputable and legitimate
enterprises.  B4 project grievance mechanism is accessible to
all parties engaged in B4 project including 3rd party
 Establish policies and procedures for and supply chain.
managing and monitoring the performance of
third-party employers.

 Ensure access to a grievance mechanism for

third party workers.
Workers Engaged by Supply Chain
PS 2 Requirement ADNOC Standards & SUS-PR-002
 Risk of Child/Forced Labor
 Pre-qualification, tendering and monitoring
o Identify risks, remedy, and monitor primary
process of Contractor & supply chain.
supply chain on an ongoing basis.
 Safety Issues
 A systematic process is detailed in ADNOC &
o Introduce procedures and mitigation Borouge standards to ensure the compliance with
measures to ensure that primary suppliers the requirements.
are taking steps to prevent or to correct
life-threatening situations.

 The ability of the client to fully address these

risks will depend upon the level of
management control or influence over their
primary suppliers. If risks are not possible to
be addressed, alternative suppliers should be
identified.
 Issues/Challenges
Occupational Health & Safety Supply Chain Grievance Mechanism
 OHS assessments are not  Poor identification of third-party  Not all workers are identified.
included as part of the ESIA. workers engaged on core Relationships between client and
activities. indirect workers are not
 OHS assessments do not cover assessed:
all activities, particularly those o Obtain detailed information
performed by third parties.  Responsibilities defined by local
law might be different than the on types of contracts and
 Focus only on occupational objectives of this PS. outsourced/contracted
accidents (not occupational services.
disease). o Request data on migrant
 Poor identification of the scope
workers and contractors.
 Under-developed application of of applicability for supply chain:
o Review sample of contracts
the hierarchy of control including identification of primary
and bargain agreements.
suppliers and safety aspects
principles.  Workers are not aware of their
rights to organize or are not truly
 Causal analysis of accidents is
represented:
not comprehensive.
o Meet workers’
 Performance indicators focus representatives.
mainly on accidents and rarely o Review local
on prevention law/requirements–consider
local context.
 Grievance Mechanisms are not
functional
THANK YOU