Verification 19 November 2019
1. Revise HIRADC by considering workplace accidents in all plantation and factory areas 2. OHS Manager conducts refreshment training in preparing HIRADC for OHS PIC
3.6 Summary of Arising Issues from Public and Auditor Verification Public Issues
(Institution/ NGO/Community) Auditor Verification Labor Agency of Labuhanbatu district
- There are no complaints or reports related to wages or overtime violations of workers.
- Wages and overtime have been paid in accordance with applicable regulations.
- The agency said the dispute related to fatal accident on Bilah Estate has been solved.
- The Communication goes well, all mandatory reports related to plantation operation have reported well.
- The company already registered all the workers to BPJS Ketenagakerjaan.
- The company had daily workers (BHL).
- PPE served by company (free).
It has been verified and stated under principle 6 in the report
Agriculture Agency of Labuhanbatu District
- The Communication goes well, all mandatory reports related to plantation operation have reported well.
- There is no issues of land fires and Tools and fire brigade personnel are sufficient.
- The company has been doing CSR activities in the field of education, regional development
- The agency said there’s a land claim from Serikat Tani Sejahtera Indonesia in Pangkatan (who send a letter to President Staff Office in Jakarta).
It has been verified and stated under Criteria 1.1; 2.1;
2.2; 4.7; and 6.10 on The report
Based on the results of interviews with the Plantation Agency of Labuhan Batu District, there was information of land claims from the Indonesian welfare farmers' union. The company has responded to the letter from the Plantation Agency on 14 August 2019. In the letter, the company said that the land problem had been resolved with a chronology starting with the data collection from the Land Agency of Labuhan Batu District, through a letter dated 18 September 2018 which was responded by the company on 23 November 2018 and then carried out a follow-up mediation involving the Labuhan Batu Police Station on 29 November 2018 with the results showing that the land claim was not proven and the company could show proof the payment of compensation for the land claimed. According to information gathered during stakeholder consultation with the communities, it was confirmed that no land dispute/conflict is raise at present
Environmental Agency of Labuhanbatu District.
- The company had Climate Village Program.
- The Agency said the dispute related to pollution in Sei Kundur River has been solved last year.
- The company in progress to not use plastic anymore.
- There’s no issue related to land fire.
- The Communication goes well, all mandatory reports
It has been verified and stated under principle 5 on The report
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Public Issues
(Institution/ NGO/Community) Auditor Verification related to plantation operation have reported well.
National Land Agency of Labuhanbatu District - There’s no issues related to land dispute.
- PT Bilah is in progress for land use title extention.
- The report for land use title is not optimal.
- Land use title for PT Pangkatan valid thru 2023.
- Land use title for PT Sembada valid thru 2032.
All comments given indicates positive response of company operational activities towards legality aspect such as land rights, business permit, land dispute/grievances, etc., as mentioned in Criteria 2.2;
2.3; 6.3 and 6.4.
Village of Sennah
Village of Perkebunan Sennah
Village of Sidorukun
Village of Kampung Bilah
- The relationship between company and communities is quite good, the PIC for communication is Estate Manager - There is no land dispute and/or other dispute in Bilah Estate - There is communities domestic waste issue, the communities has requested to company for their domestic waste handling, so that the waste transported regularly from the village and piled in the company’ landfill
- There was a grievance regarding to the impact of operational of BIE namely the flooding that more frequent and its volume that more large.
Further detail from other stakeholder views and document review could be checked on Criteria 1.1, 1.2, 2.2, 5.1, 6.1, 6.2, 6.3, 6.4, 6.8, 6.10 and 6.11 in this report.
The issues from Kampung Bilah related communities domestic waste and the impact of operational of BIE namely the flooding that more frequent and its volume that more large, has been verified by auditor and describe in summary criteria 6.1:
Based on interviews with stakeholders (surrounding communities and related institutions) there are social impact issues that have not been included in the management plan, for example:
- Managing the impact of flooding into the village of Kampung Bilah, Sennah village and the management of domestic waste in Kampung Bilah community
- Impact to employees with the residence far from the work location (access via highway road) - The use of piece-rate workers and daily-rate
workers and specified-time contract workers - Issues of the impact of PGE plantation operations
on river water (Sekundur River).
Based on the explanation above, known that the company yet identified entire social impacts, managed effectively and monitored. This is a non-conformity NCR no. 2019.6
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Public Issues
(Institution/ NGO/Community) Auditor Verification Accident compensation recipient (Heirs of workers)
- The compensation has given by the company and has been received by the heirs (workers husband)
- There is no grievance conveyed by the heirs
Has been verified by auditor team and explained in indicator 4.7.6
Gender Committee
- There is no issue related to sexual harassment, reproductive rights, and discrimination.
- Routine activities posyandu and recitation.
- Women worker give menstruation leave by recommendation paramedic for maximum 2 days. Women workers also has rights of maternity leave for 45 day before and 45 days after.
There is no negative issue related to women workers.
It has verified by auditor team and has been explained in indicator criteria 6.9 and become nonconformities in indicator 6.9.1 and 6.9.2
Labor Union
- The prevailing wages in the company are in accordance with Labuhan Batu Regency in 2019 dated 31 December 2018.
- The company has registered employees in the BPJS (Social Insurance)
- The labor union was not know of the problems of daily workers who have work accidents because the daily workers were not member of the labor union.
- The company has provided PPE and work tools.
- Routine health checks are carried out every year.
- There is no complaints from workers.
- Piece rate workers are under cooperatives managed by labor unions.
- Piece-rate workers have been included in social insurance.
It has verified by auditor team and has been explained in indicator 2.1.1 and criteria 4.7, 6.5, 6.3, 6.6. Some labor implementations have become nonconformity in indicator 6.5.1
Local Contractor
- The contractor has a copy of the agreement with the company
- Payments to contractor accordance with the agreement.
- Contractor workers have been provided with PPE and already have BPJS
- The company has provided socialization regarding the code of ethics and human rights.
Based on document verification, show that the rights and obligation of each party has been set in the contract.
FFB Supplier
- The supplier has a copy of the agreement with the company
- Payments to FFB supplier accordance with the agreement.
Based on document verification, show that the rights and obligation of each party has been set in the contract.
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Public Issues
(Institution/ NGO/Community) Auditor Verification - Workers of FFB supplier have been provided with PPE and
already have BPJS
- The company has provided socialization regarding the code of ethics and human rights.
- The company has a policy of prohibiting bringing cellphones and cigarettes to the factory area. The policy is known and accepted by the supplier.
RSPO – 4006a/1.0/27062018 Page 85 Prepared by Mutuagung Lestari for Pangkatan POM – PT Pangkatan Indonesia (MP Evans Group PLC) 4.0 CERTIFIED ORGANISATION'S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY
4.1 Formal Sign-off of Assessment Findings
Hereunder sign by management representative from inspected company to acknowledge a field assessment and agree for all content explained in this assessment report, included of non-compliance findings.
Signed on behalf of:
PT Pangkatan Indonesia Mutuagung Lestari
Management Representative Lead Auditor
Arvind Devadasan Leonada
Tuesday, 19 November 2019 Tuesday, 19 November 2019
RSPO – 4006a/1.0/27062018 Page 86 Prepared by Mutuagung Lestari for Pangkatan POM – PT Pangkatan Indonesia (MP Evans Group PLC) No Institution/NGO/Community Address Phone/Email Form of
Communication Date of
Contact Response Yes No 1 Labor Agency of Labuhanbatu
district Labuhanbatu Regency - Public
Consultation 20 August
2019 V -
2 Agriculture Agency of
Labuhanbatu District Labuhanbatu Regency - Public
Consultation 20 August
2019 V -
3 Environmental Agency of Labuhanbatu District.
Labuhanbatu Regency - Public
Consultation 20 August
2019 V -
4 National Land Agency Labuhanbatu Regency - Public
Consultation 20 August
2019 V -
5 Labor Union Labuhanbatu Regency - Interview 20 August
2019 V -
6 Gender Committee Labuhanbatu Regency - Interview 20 August
2019 V -
7 Local Contractor Labuhanbatu Regency - Interview 20 August
2019 V -
8 FFB Supplier Labuhanbatu Regency - Interview 21 August
2019 V -
9 Kampung Bilah Village Labuhanbatu Regency - Interview 21 August
2019 V -
10 Sidorukun Village Labuhanbatu Regency - Interview 21 August
2019 V -
11 Sennah Village Labuhanbatu Regency - Interview 21 August
2019 V -
12 Perkebunan Sennah Village Labuhanbatu Regency - Interview 23 August
2019 V -
13 Pangkatan Estate:
- 4 Manuring Workers - 1 Harvesting Worker - 2 warehouse officer - 1 harvester
- 1 piece rate worker
Labuhanbatu Regency - Field
Observation and Interview
23 August
2019 V -
14 Bilah Estate:
- 3 Spraying workers - 2 Harvesting workers - 1 Upkeep Worker - 2 warehouse officer - 1 welder
- 2 paramedics - 2 nannies - 1 osmosis officer
Labuhanbatu Regency - Field
Observation and Interview
21 August
2019. V -
15 Sennah Estate:
- 2 Spraying Workers - 2 piece rate workers - 1 Upkeep worker - 1 praying foreman
Labuhanbatu Regency - Field
Observation and Interview
22 August
2019. V -