In a relatively remote province like Riau, in a developing country like Indonesia, employment has a particular level of significance for both APRIL and our people.

Our remote location means we have to care for our employees in ways that many of our international pulp and paper industry counterparts do not. To meet their day-to-day needs, our employees receive quality housing, medical facilities, international and national-syllabus schools for their children, as well as sporting and recreational facilities.

However, our impact on their lives does not end there. The skills, training and opportunities we offer our employees enable them to improve their lives and the lives of their families. It is a matter of great pride for us that we can bring these opportunities to the people of Riau Province.

For APRIL, the benefits are equally powerful. By caring for and training our employees well (in some cases sponsoring them through Masters-level degrees), we are building a local workforce of increasing depth and expertise. This adds greatly to our strength as a company.

Employee Satisfaction

Figure 55: EMPLOYEE SATISFACTIONEmployee Satisfaction APRIL and our employees both benefit from strong employee satisfaction. To ensure an accurate understanding of employee satisfaction levels, we commission an annual independent employee satisfaction survey. This survey covers areas such as rewards, recognition, training and development. The results so far have been encouraging.

Over the last three surveys, all scores have been in the “Good” category with a slight year-on-year increase. The 2012 survey results provided insights into employee commitment levels and concerns. Employees identified three areas that were most important to them. These were “clear career path”, “opportunity to develop career” and “earlier promotions for high performance employees.” This information will be used to improve HR programmes, policies and practises.

Employee Rights

APRIL Indonesia adheres strictly to national labour laws and our own codes of practice to ensure appropriate employment practices are implemented. These include strict rules against the use of child labour - Indonesian Labour Act No. 13 of 2003 defined the term “child” as every person whose age is under 18 (eighteen) years old (Article 1). Our standard operating procedures (SOPs) provide for the checking of identity cards of all people working on our sites. This enables us to check that no under-age employees have been engaged.

APRIL’s entire supply chain is covered by Origins and Legality of Timber (OLB) Standards for Forestry Companies, an international legality certification that is externally verified by Bureau Veritas. Ours was the first industrial plantation company in Asia to achieve this certification in 2011, which requires adherence to all laws and regulations on employment and labour. These include respecting the legal hiring age and allowing staff to organise and negotiate their hiring in accordance with conventions 87 and 98 of the International Labour Organisation.

We also have strict rules against the use of forced labour. All employees receive proper employment contracts which stipulate job title, terms of employment as per standard company practice, and compensation. We require contractors to also adhere to all laws and regulations in regards to employment and labour. For example, contractors who provide us with labour supply are required to show proof of payment for their workers’ national social security prior to receiving payment on their invoices submitted.

OLB certification also requires that we align the company’s policy for health and work safety with legal and regulatory requirements, and develop it in open co-operation with workers. For example, our workers have access to appropriate individual protection equipment and we ensure that we possess the means to take care of any worker who suffers an industrial accident, regardless of their contract type.

APRIL recognises and respects the right of freedom of association and the right to form or be members of labour unions, as permitted under Indonesian law. We maintain collective bargaining agreements with trade and labour unions. In 2012, union membership in our company increased from 67.8% in 2010 to 74.8%*.

In accordance with existing collective labour agreements, the first attempt to resolve a significant dispute is made at the level of the employee and the relevant Company superior.

If unresolved at this level, the dispute will be elevated to deliberation and resolution by a bipartite body comprising members of the Company and the union.

If this fails, the worker may pursue the grievance with the local government authority (Department of Labour) through the union for mediation and resolution, in accordance with existing labour law and regulations. Such issues may include retrenchment, salary negotiation and payment of incentives.

Our plantation and mill are also certified under the Health & Safety Management System OHSAS18001. This system is underpinned by the development and implementation of policies and procedures.

In 2011-2012, APRIL Management experienced no significant issues in regards to employee rights or relations. For example, there were no strikes or similar stop work periods.

Employee Benefits

We are committed to providing employee benefits that comply with national laws and ensure the welfare and living standards of our staff. Our comprehensive benefits packages are fundamental to the retention of talented people. Employee benefits include:

Medical care

  • Health insurance, on-site medical clinics, and employee physical examination annually
  • Employee relief fund granted to employee/spouse/children suffering from a critical illness or accident hazard
  • Regular company doctor visits to employees and/or employee family members who are hospitalized in area hospitals.

Housing

  • Accommodation or monthly housing allowance

Safety

  • Safety induction briefing as part of the orientation programme
  • Personal Protective Equipment (hardhat, safety shoes, eye and hearing protection, etc.)
  • Regular emergency drills

Insurance

  • Social security benefits such as retirement plan, group life and accidental insurance coverage

Schools

  • Employee families have access to schools in areas where we operate, which includes on company premises and within all our concessions in Riau. These schools are staffed by qualified teachers and school fees are subsidised.

Training

  • APRIL employees have the opportunity to receive training certification as a form of recognition. Training covers areas such as our Driving Licence Programme (DLP) certification

Awards and incentives

  • Annual competition for continuous improvement initiatives

Service awards and gifts

  • Recognition for long-service employees as well as for special events such as marriage, new births, birthdays or funerals of family members