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Page 1: Sugar Growers Association – ASAZGUA- - · PDF fileMaría Silvia Pineda Molina CSR Director ... customary by complying with the country’s legal system. ... management model based
Page 2: Sugar Growers Association – ASAZGUA- - · PDF fileMaría Silvia Pineda Molina CSR Director ... customary by complying with the country’s legal system. ... management model based

Sugar Growers Association – ASAZGUA-5a. Av. 5-55, zona 14Edificio Europlaza, torre 3, nivel 17Guatemala, CentroaméricaPBX: (502) 2386-2000www.azucar.com.gt

General Director:María Silvia Pineda Molina CSR Director - ASAZGUA

Written by:Geraldina MancillaInternal Relations Manager - CSR ASAZGUA

Design and Layout:Ricardo LemusGraphic Designer - CSR ASAZGUA

Editing:Mayra Vargas

Printed by:Sir Speedy

1st. Edition, December 2015

Page 3: Sugar Growers Association – ASAZGUA- - · PDF fileMaría Silvia Pineda Molina CSR Director ... customary by complying with the country’s legal system. ... management model based

PrologueGuatemala’s sugar is one of the country’s most productive and successful sectors. This is due to two fundamental aspects: 1) Developing agricultural and industrial processes hand in hand with 2) increasing the labor forces’ human development. Both aspects have advance in parallel, thanks to the Guatemalan Sugar Association’s (ASAZGUA) Board of Directors, which lead and supported the research processes, investing in infrastructure, education, and training projects necessary to reach their current leadership position.

Their success has been criticized, mostly by people with little knowledge of the sector, based on generalizations, without taking into account Guatemala’s Sugar’s strategies to guarantee dignified and decent working conditions, as well as a safe and healthy working environment. This statement, is not a slogan, it encompasses the efforts the sector has made to create Guild Policies, which are followed universally in the sugar agroindustry.

Said policies are demonstratively the best roadmap. Since their implementation they have translated into increased productivity, giving the sector a competitive and comparative advantage. Proving this are the following figures: Guatemala’s Sugary Agroindustry in the 2014-2015 harvest holds is the world’s third place in sugar productivity, and is Latina American and the Caribbean second largest exporter, as well as the world’s fourth largest sugar exporter. Sugar exports represent 31.25% of the country’s total agricultural exports and 14.69% of total exports.

This would not be a reality were it not for the commitment and effort of its employees. It is because of this that the sugar agroindustry continues to work to improve and extend the various norms and policies, as well as creating new ones when the need arises, knowing that this is “the” differentiating factor in competitiveness, and therefore the operational sustainability of this Guild.

Prol

ogue

Page 4: Sugar Growers Association – ASAZGUA- - · PDF fileMaría Silvia Pineda Molina CSR Director ... customary by complying with the country’s legal system. ... management model based
Page 5: Sugar Growers Association – ASAZGUA- - · PDF fileMaría Silvia Pineda Molina CSR Director ... customary by complying with the country’s legal system. ... management model based

Table of contentsIntroduction

1. Guild Policies ...................................................................1.1. Labor Policy ..............................................................

Employment benefits .......................................................Work Schedule ....................................................................Services to Cane Cutters ..................................................Living Quarters ...................................................................Balanced Meals ...................................................................Medical Services .................................................................Transportation .....................................................................Services in the Field ...........................................................Break Program .....................................................................Access to Shade ..................................................................Toilets .....................................................................................Hydration ..............................................................................Programed breaks in the shade.....................................

1.2. Transport Policy ......................................................1.3. Work Health and Safety Policy ..........................1.4. Environmental Policy ...........................................1.5. HIV in the Workplace Policy ...............................1.6. Cane Supplier Policy ............................................

2. Labor Policy Compliance Evaluation .....................

3. Certificates ......................................................................

4. Freedom of Association ..............................................

5. Public-Private Partnerships ........................................

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Page 6: Sugar Growers Association – ASAZGUA- - · PDF fileMaría Silvia Pineda Molina CSR Director ... customary by complying with the country’s legal system. ... management model based
Page 7: Sugar Growers Association – ASAZGUA- - · PDF fileMaría Silvia Pineda Molina CSR Director ... customary by complying with the country’s legal system. ... management model based

IntroductionThe 1990s were an important decade for Guatemala’s Sugar. It was during this period that the Sugar Mills that conform the sector, began the modifications and adjustments to their agricultural and industrial productive processes. Sugar production has been occurring for centuries, therefore all changes had to be carefully considered, addressing doubts regarding the social or economic impact of implementing these changes. Regardless, a profound and targeted transformation has closed the gap between what was customary by complying with the country’s legal system.

Following the Corporate Social Responsibility (CSR) framework, from 2002 onwards, the Guatemalan Sugar Association’s (ASAZGUA) Board of Directors, resolved to strengthen the current corporate government. They proceeded to formulate a series of Guild Policies to foster a working environment based on individual and shared responsibility enriching collective relationships, and allowing everyone in the corporation to attain social and economic development.

Guatemala’s Sugar adopted the concept of CSR as a business management model based on ethics and respect for the rule of law, in order to reach higher levels of competitiveness and sustainability. In other words, CSR is not an end in and of itself, but a management model for shared responsibility between employees and the corporation1.

1. https://www.youtube.com/watch?v=JWJQdPW813E

Intr

oduc

tion

Page 8: Sugar Growers Association – ASAZGUA- - · PDF fileMaría Silvia Pineda Molina CSR Director ... customary by complying with the country’s legal system. ... management model based
Page 9: Sugar Growers Association – ASAZGUA- - · PDF fileMaría Silvia Pineda Molina CSR Director ... customary by complying with the country’s legal system. ... management model based

1. Guild PoliciesThe Guild Policies represents the effort by Guatemala’s Sugar to establish the best possible standards in labor practices, guaranteeing dignified and decent work conditions, as well as a healthy and safe work environment for all its employees.

Each policy was written in a participatory and joint manner, and includes rules and regulations as well as minimum and ideal requirements, which must be adjusted to each sugar and by-products production process and activity.

Since their adoption, these policies have not only strengthened the feeling of belonging and commitment among employees towards the sugar mills, it is also reflected in the low worker turn-over, as well as increased productivity, and therefore a true competitive and comparative advantage for the sector. Policies have also become a measurable strategy which reinforces the industry’s credibility.

The current policies are the following:

• Labor Policy• Transport Policy• Environmental Policy• HIV in the Workplace Policy• Work Health and Safety Policy

Guild Policies of Guatemala´s Sugar

01

1. Gu

ild P

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1. 1. Labor Policy The Labor Policy created for Cane Cutters, was developed to promote dignified and decent working conditions during Cane Cutting Season, known in Guatemala as Zafra.

This policy covers basic elements such as compliance to national laws, specifically what is covered in the Decree 14412 of the Work Code, by providing benefits and salaries above what is often seen in agricultural work, as well as cost-free lodging, for workers who migrate from the highlands (Quiché, Alta Verapaz, among others).

This policy ensures the physical and mental wellbeing of employees through various initiatives, such as balanced meals, recreational areas, permanent medical services, on top of Social Security.

All of these norms are held in the Policies and Norms for Cane Cutting Personnel Manual, which standardizes good practices among all Sugar Mills.

Average Socioeconomic Profile of Cane Cutters

2.http://www.mintrabajo.gob.gt/images/organizacion/leyesconveniosyacuerdos/Leyes_Ordinarias/Codigodetrabajodeguatemala2011.pdf

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1.1. Labor Policy

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In detail, the Labor Policy covers the following items:

Hiring and Pay based on productivity: Each Cane Cutter signs a labor contract with the Sugar Mill. In harvest 2014-2015 they received an average salary of Q.4,455.00 which is above the legally established minimum wage for agricultural work of Q.2,644.00 3.

Incentive Bonuses: the incentive bonus of Q.250 is paid each month, as recognitions for increased productivity and efficient performance. This is not calculated as part of the work benefits. Explico S.A4 is an external company evaluates compliance with Guild policies.

During the 2014-2015 Zafra it certified that the average wage received by a Cane Cutter was Q.4,455 + Q.250 (incentive bonus), which is a total of Q.4,705.00 monthly, which represent an average 78% above the minimum wage established in for agricultural activities in the Work Code.

A Cane Cutter’s average salary not only covers the National Cost of Living Level (Canasta Básica Alimenticia), of Q.3, 247.20, established by the National Statistics Institute (INE)5 as of January 2015, it also surpasses it by 44%.

Explico S.A’s external evaluation indicates that 24% of Cane Cutters said that their salary allows them to purchase more than it did before, and that 63% says it allows them to purchase the same amount as before, only 13% say it is less than before. The same evaluation explains that 86% feel satisfied with their salary earned during the Zafra season.

3. The Governmental Decree, number 470-2014 established new minimum wages, including one for agricultural work with a minimum of Q.2, 6444.40, to be enacted as of January 2015. As published in the Central American Daily (Diario Centroamerican) on December 19th 2014.

4. Explico Analytics S.A, a Guatemalan company responsible for developing research projects.

5. http://www.ine.gob.gt/sistema/uploads/2015/02/1stbWBaaCNv92A6pagvK4nAD7AOH6QDDY.pdf

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Labo

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Employment benefitsAll Cane Cutters receive -by right as established in Guatemalan Law- the following Employment Benefits:

• Social security coverage: Medical assistance through the Guatemala Social Security Institute (IGSS), an institute that is financed by the employer’s contribution of 12.67% and an employee’s contribution of 4.83%.

• Bonus 14: Ethis work benefit is paid once a year, the total being an average of wages paid during the year for the work done in the last 12 months.

• Christmas bonus: a yearly bonus, equal to a monthly salary for a year’s work, paid each year in December.

• Vacations: after a year of continued services, the employer must give each employee a vacation period of 15 paid working days.

• All workers have the right to ask for paid and un-paid leave, without losing their job post.

• Weekly break: every employee has the right to enjoy a paid day of rest, after a week’s work, a break commonly known as “pay on the 7th day.”

Work ScheduleAt the beginning of each Zafra, Cane Cutters are informed and sensitized about the number of working hours in their work day, which should only be 8 hours, based on the Work Code6.

To regulate this, there is a registry of each working day for each employee. Explico S.A also certified that during 2014-2015 Zafra, 39% of Cane Cutters worked less than 8 daily hours, and that only 49% said to have worked between 8 – 9 hours each day. Explico S. A’s external evaluation certified that 81% of Cane Cutters said that their work hours were between 8 and 9 hours which is within the limits authorized by the Ministry of Work.

6. Work Code, Chapter Three, Working Days, Article 116: an ordinary work days during the daytime may not be any longer than eight working hours per day, without going over 48 ordinary working hours a week. An ordinary working day is considered the time that the employee is under the employer’s instructions.

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Employm

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Services to Cane CuttersMany Cane Cutters migrate from other regions in the country, which is why Guatemala’s Sugar standardized a series of activities to respond effectively and efficiently to their needs during Zafra. These measures also guarantee the health and safety of Cane Cutters.

Living Quarters: These installations allow Cane Cutters to be housed in the most dignified and comfortable way possible. The premises include the following:

Sleeping quarters for resting, where they are supplied with flashlights, lighting, fans, and mosquito nets. These quarters are given at no cost.

Toilets, 1 for every 15 persons.

Showers, 1 for every 15 persons.

Clothes washing areas and basins.

An industrial kitchen which provides food under strict hygiene and sanitation norms, and under permanent supervision.

Ventilated mess hall with illumination, tables, and sitting areas.

Recreation areas for a comfortable rest following a day’s work.

The use of all the areas in the living quarters are regulated by the Cane Cutter’s Orientation and Education Manual, which is given and explained to each cutter at the beginning of their employment. There are also service personnel hired by each Sugar Mill who are responsible for the maintenance and cleanliness of the living area.

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Serv

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Balanced Meals Nutritionist are responsible for creating the menus for each meal, based on the protein and caloric requirements of a balanced diet for Cane Cutters after a day’s work.

The meals are also planned as to provide a variety of foods, based on known taste and cultural preferences of employees from across the country. This often requires for personnel to go on field visits, and learn about the Cane Cutters preferences to ensure that creating new recipes are adequately evaluated and approved, as well as passing surveys among consumers and adjust menus accordingly.

Breakfast and Dinner are eaten in the Mess Hall, while Lunch is taken in the field. Every day, following strict Hygiene and Sanitation norms, during Zafra, meals are prepared and distributed three times a day to an average of 16,000 Cane Cutters from the highlands, among others departments.

Living quarters and recreational areas

Basic services provided to cane cutters

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Balanced Meals

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Medical ServicesOn top of the Social Security coverage, the Sugar Mills have medical clinics in every single Living Quarter, where Cane Cutters receive medical attention and check-ups. Professional staff provide periodic medical check-ups, supervise and control for seasonal illness, provide first aid services, as well as promote healthy lifestyles through health education sessions.

Transportation Every day, all Cane Cutters are transported from the Living Quarters to the field where they will be cutting, with buses driven by pilots who follow driving safety rules and regulations, as established by the Transportation Policy. At the end of the day they return to their living quarters in the same transport.

Healthy, safe, and nutritious meals

Medical Services are provided at the work fronts and in clinics

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Services in the FieldIn an effort to encourage optimum working conditions that ensure Cane Cutter’s health and minimize risks related to heat stress, since 2012, ASAZGUA’s Board of Directors has added to the Labor Policy a series of services provided in the field, which include the following:

• Programed breaks in the shade• Shaded areas• Toilets • Hydration

Programed breaks in the shadeThe breaks need to be substantial to reduce heat stress and allow the body to recover from any exertion.

Due to this, a schedule was created monitoring the heat curve during the day. The work schedule is programed accordingly, and setting 20 minute breaks during each peak.

Depending on the day’s temperature adjustments to the work periods are made, which can be longer early in the morning and shorter as noon approaches, leaving time for lunch, also in the shade.

Transportation for personnel, photo of La Unión Sugar Mill

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Services in the Field

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The following table shows a break program for work and break periods:

a) A diary of the workday, marking work periods and breaks, and the beginning and end of each period.

b) Field representatives who use whistle to marks the beginning and end of each period.

c) A registry that is handed over to the Human Resources Managers, o Cane Cutter’s Services, as back-up documentation of the work and breaks hours. This information allows communication among all levels to occur, pertaining work schedules, and the conditions of these (cutting, breaks, hydration, team preparation, and calisthenics, among others). A productivity stability curve is also evaluated so that workers become familiar with this norm, and convinced of its benefits to their health and economy.

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Prog

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sha

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Access to ShadeTo offer Cane Cutters more comfort during their breaks, the cutting field teams are provided with specific areas where portable shades are placed, held by aluminum poles on one side and the bus that transports them on the other.

Under the shade workers are able to rehydrate and lower their body temperatures. Once the work day ends everything is put away for the following day. Some areas also have trees nearby, which provide another source of shade.

Sometimes, these break periods are optimized to give Cane Cutters educational sessions related to their responsibilities as well as other general training subjects.

Workers alternating between work and break periods

Tanks holding a hydrating beverage are available in the field

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Access to Shade

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Explico S.A certified that 100% of Sugar Mills provided shaded areas to all of their cane cutting field teams for breaks and lunch; It should ensure that Cane Cutters recognize the importance of shade for their wellbeing.

ToiletsEach Cane Cutting Field Team has its own portable toilet. The rules establish that each portable toilet can be used by up to 50 men, which helps comply with minimum standards of privacy for employees and avoids environmental pollution by properly closing the pit used when the portable toilet is removed.

HydrationAlongside the break programing, the worker’s hydration is also highlighted, because the high heat can represent a range of risks.

Shading is provided to all workers, photograph of Pantaleón Sugar Mill

Portable toilets in the fields

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Due to this, all Cane Field Teams must have water and hydrating beverages at hand for employees to recover liquids lost. The beverage distribution is as follows:

Water: with a pleasant flavor (no odors) and a temperature between 50 -60 °F. Due to humidity levels, temperature and physical load, the minimum amount consumed per Cane Cutter must be approximately 12 liters, with a maximum of 14 liters of water per day.

Hydration beverage: Field studies have shown that to avoid the negative consequences of heat it is important for the body to maintain its electrolyte balance and adequate hydration level at work, this is achieved by consuming a hydrating beverage and water with the following formula as recommended by the WHO7:

To guarantee hygiene in water distribution, each Cane Cutter is given the hydrating beverage in a personal container. The maximum amount consumed of this beverage is 1 liter a day.

7. WHO World Health Organizatiopn, ORS ( Oral Rehydrate Salts) 2001

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Water/ Hydration beverage

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Explico S.A certified that 86% of Cane Cutters were given 12 liters of water or more per person, while on average Cane Cutters estimated that they consumed an average of 11.75 liters. Other important evidence is that 100% of Sugar Mills evaluated provided as minimum 1 liter of hydration beverage per cutter.

Activities to prevent Heat StressA study done by VidaSaludable during the 2014-2015 Zafra recommended complementing existing prevention measures related to exposure to high heat. This is why during the 2015-2016 Zafra new ambient temperature measurements will be done by: taking dry bulb temperature, wet bulb temperatures, and globe temperatures. Additionally, the physical load will be measured through a new metabolic load measuring devise. All of these procedures will help reduce the risk of heat stress.

1. 2. Transport PolicySome people believe that there are too many cane carrying vehicles on public roads. In reality, 7 out of 10 vehicles use national roads, the majority of them circulate on private roads within the sugar plantations. Regardless, to guarantee that the cane transport vehicle drivers are responsible while driving, respecting transit laws, and avoiding accident, Guatemala’s Sugar created the Transport Policy.

Preparing Hydration Beverage, photo of Pantaleón Sugar Mill

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This initiative takes actions that increasing knowledge, attitudes, and practices targeted towards improving the cane transport’s driver’s behavior with the ultimate goal of increases road safety, and enrich coexistence among pilots, communities, local transit authorities, etc.

The transport norms include important aspects of the Ministry of Communications, Infrastructure and Housing (MICIVI)’s policy, international norms and the sector’s own research findings. Some of the most important content is: speed limits, maximum weight and dimensions of the load, road signs, among others. Two manuals encompass these norms: Defensive Driving Manual and Good Sugar Cane and its byproducts Transportation Practices Manual.

Prior to the beginning of Zafra, all pilots must receive a training given by the Technical Training and Productivity Institute (INTECAP), additionally the Transport Commission (integrated by the Transportation Chiefs at each Sugar Mill), continuously supervise areas under transportation, such as: machinery, roads, signs, road maintenance, etc.

Average Socioeconomic Profile of Drivers

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Average Socioeconomic Profile of Drivers

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1.3. Health and Safety at Work PolicyWhile working all employees are exposed to some degree of hazards, often related to their work, due to this, they may have work related illnesses or accidents. These occurrences can affect the worker’s health, quality of life, and family life, as well as generate loses to the company due to absenteeism or lower production quality.

Taking these concerns to heart, Guatemala’s Sugar, in 2012, created ASAZGUA’s Health and Safety at Work Policy (SSO). Like all processes, it began with a diagnosis among the Sugar Mills in the Guild, and other support institutions to establish a degree of implementation and reduce work related hazards.

The diagnosis allowed to identify areas requiring improvements and how to move forward. Due to this and to further improve the policy, a certificate for stakeholders in Work Health and Safety

Transport and Defensive Driving Manual

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1.3. H

ealt

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fety

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Wor

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was created, meant to standardize knowledges and practices in this policy’s management.

While Guatemala’s Sugar was developing its Health and Safety Policy the Ministry of Work and Social Provision published the

government agreement number 22-2014 where it states its required measures for Health and Safety that apply to both public and private sectors. Due to this, a workshop was held to revise Guatemala’s Sugar’s policy and ensure that this new public policy was adequately integrated.

During the workshop the Sugar Mills and its support organization were present, and they strengthened this policy based on their prior experiences. The document created was later presented to the Chamber of Agriculture, which shared it with the National Council of Work Health, Hygiene and Safety (CONASSO).

After this, Guatemala’s Sugar sent the Ministry of Work a copy of its new policy, so that the ministry could take the comments and recommendation into consideration, these were accepted and include in the Ministry’s own policy revision.

Health and Safety Policy Training Participants, August 2012

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Health and Safety Policy

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The Work Health and Safety Policy that was finally developed by Guatemala’s Sugar establishes control over occupational risks, and including the country’s legal requirements as well as its client’s necessities, through a Work Health and Safety Management System, it established the rules that lead to a culture of prevention.

1.4. Environmental PolicySince the 1990s Guatemala’s Sugar began improving environmental management. Furthering on this path the Environmental Policy was created. The policy represents the guiding framework focused on reducing the productive activities’ impact on the environment.

Thanks to this, projects have begun that establish basic standards of environmental performance, by incorporating and developing clean and renewable technologies, as well as efforts to protect and conserve the environment.

AG 229-2014 Analysis Workshop, October 2014

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nvir

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The Policy Allows:• Access to certificates to become more competitive and increase

market access.• Complying with the national environmental legal framework. • Be cutting edge within the region’s sugar sector, complying

with international conventions, legislation, and trade deals.• Contribute to the sugar sector’s sustainability meanwhile

improving the quality of life in the area of influence.

1.5. HIV in the Workplace PolicyAccording to the National Epidemiological Center (CNE) of the Ministry of Public Health and Social Assistance (MSPAS), the majority of Sugar Mills are geographically located in the epidemiological corridor with high incidence of HIV/AIDS.

Additionally, the Cane Cutters and Cane Transport Drivers’ profiles present a higher risk, which makes them more vulnerable to sexually transmitted infections (STI) and HIV/AIDS.

The HIV in the Workplace Policy, launched in 2012, within the institutional framework is followed by all organizations within ASAZGUA, based on a joint responsibility with the Government, companies, and individuals, to prevent, and provide attention and care for cases of HIV/AIDS, which allows for dignified and decent employment, based on healthy and risk-free labor conditions.

The policy covers various fundamental aspects: educations and prevention, no discrimination, orientation methodology and support, promoting an integrated response to the needs brought out by HIV in the sector. This is done through partnerships with other local health services, both private and public.

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1.5. HIV in the Workplace Policy

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Since the policy was in place, numerous partnerships have been created with institutions with expertise in the area, responsible for sensitizing on topics of: Sexual and Reproductive Health, Family Planning, and preventing HIV and STIs. As well as having health services for diagnosis and treatment of ITSs for more the 8,000 Cane Cutters and 109 doctors and paramedics.

1.6. Cane Supplier PolicySince 2006, Guatemala’s Sugar has unified good labor practices among all the Sugar Mills within the Guild through the following Labor Policy and Transport Policy. Today, international markets are interested that these good practices are extended along the entire sugar supply chain. The challenge lies in the providers of raw goods for the Sugar Mill, specifically those who sow and grow sugar cane to later sell to the mills, ensuring that they adopt the Cane Supplier Policy which guarantees dignified and decent labor conditions for their employees.

The first measure was to establish communication with the Sugar Cane Growers Guild of the South, which was open to participating in this initiative, beginning with a series of meeting with the 80 Guild members. This in and of itself is an achievement because it meant that the norms implemented by ASAZGUA during the last 25 years, could now be adopted by this group of producers, guaranteeing the physical and mental wellbeing of its employees.

As with all processes, the implementation of this policy, by its nature, requires to start with a diagnosis to detect weakness that will require changes leading to increased productivity and improved lifestyle of employees particularly, also identifying the structural organization, existing supervision systems, conditions, and work methods.

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This diagnosis will occur during the 2015-2016 Zafra, and will allow to learn about the sowing and harvest processes, a picture of the real time conditions in relation to the 14 aspects supervised by the Ministry of Work’s Work Inspection (MWWI), which are the following:

1. Payroll documents for the last 6 months.2. Payroll books, registered and updated for the latest

payment date.3. Minimum wage, verified amount.4. Incentive bonus, by decrees 78-89 and 37-2001.5. Payment of weekly rest day.6. Documentation of payment of Guatemalan Social Security

Institute (IGSS), during the last six months. 7. Annual bonus payment, for private and public employees,

during the last required period. 8. Documentation of paying Christmas Bonus, for the last

period when paid. 9. Record of submitting the Statistical report for the year

2014.10. Internal Labor Rules, authorized by MWWI8, visible in two

locations, and each employee must have a copy. 11. Work Health and Safety Committee.12. Providing personal protection equipment for all worker

activities such as: metal gloves, breathing masks, eye protection, ear protection, apron, overalls, helmets, metal tip shoes, masks, and others, as necessary.

13. First aid kit with all required components.14. No child labor.

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8. MWW I - Ministry of Work´s Work Inspection

14 Aspects of the Ministry of W

ork´s Inspection

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Part of this diagnosis is to identify the characteristics and behaviors manifested by those responsible of directing, leading and supporting others in reaching these objectives.

Related to work conditions and methods, the objective is to document the system through which these tasks are conceived, particularly the systematization of sowing and harvesting processes, resourcing for both activities, and identifying working conditions.

This will be done in the following stages:• Adapting the Labor Policy based on the diagnosis• Establishing verification indicators• Revise and validate the Policy• Create Manual• Present the Policy and Manual

The process to improve the entire sugar supply chain for the sector’s employees has been a gradual process, and it will continues through an agreed upon plan between ASAZGUA and its independent suppliers. We hope that by the 2016-2017 Zafra the mill’s sugar cane suppliers have put in practice the Labor Policy, and with consistent monitoring and evaluation can demonstrate their compliance with the established norms.

2. Evaluating compliance with the Labor Policy NormsWithout measuring sometime you are incapable of improving it. That is why in an effort to quantify norm compliance forthe Labor and Transport Policy, each Zafra, there is an external audit. This company is external to the industry, and its evaluation cover both quantitative and qualitative aspects.

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The evaluation helps orient changes, and validate what has been satisfactorily covered, as established by the policies. This allows for a better interrelation with personnel, both cane cutters and drivers, and therefore higher productivity. The evaluation is done through a series of interviews to a sample of 1,500 Cane Cutters in the participating Sugar Mills as well as on-site observations in the Living Quarters, to verify the infrastructure’s conditions, and services provided to Cane Cutters who migrated from the highlands. The evaluation has a 2.53% margin of error.

Regarding the Transport Policy, the norms established in the manual are verified, as well as the conditions of the transport units, and complying with driver´s training, prior to beginning the cane harvest, Zafra.

These tools also provide additional information, for example, 10 out of 10 Cane Cutters wish to return and work in the same Sugar Mill the following year, and 86% feel satisfied with the salary accrued during Zafra. Additionally, the audit also helps identify relevant factors about Cane Cutters, such as:

• Worker profile, access to hydration, working conditions, etc.

• Lifestyle in terms of medical history and incidence of specific medical symptoms, STIs, etc.

• Citizen participation: validate understanding of responsible citizenship, and community involvement.

• Socioeconomic profile.

Once the audit is finished, the norm compliance results are presented to each Sugar Mill individually, and later to the whole agroindustry. These procedure allows to validate and guarantee that Guatemala’s Sugar is providing dignified working conditions for its employees.

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Evaluation and audits

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This also allows to identify any gaps that can be transformed into opportunities of continuous improvement in services provided to Cane Cutters, guaranteeing their wellbeing during their stay in the Sugar Mills during Zafra.

3. Certificates The international markets, as well as other commercial agreements, have asked Guatemala’s Sugar to certify good manufacturing practices in the production supply chain of sugar cane. Including processes in producing sugar and honey, ethanol and other sources of energy, etc. To respond to these requests, the Sugar Mills have begun implementing norms that allow them to comply with different certification mechanisms. .

This has been an arduous task, yet these certifications have translated into windows of opportunity for the Guild by helping it optimize its resources in a continuous fashion, and have a warranty seal for its consumers, as well as giving it a competitive edge. The most relevant certification have been the following:

• ISO 9001:2008• FSSC 22000, Food Safety System Certification• HACCP, Dangers and critical control points analysis• ISCC, International Sustainability and Carbon Certification• RFS2, Renewable fuels Standard Regulation• HALAL, Muslim Foods• Kosher• BPM• OHSAS 18001-2007• ISO 17025• ISO 14000• ISO 17020

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4. Freedom of association Guatemalan law guarantee freedom of association, which has become stigmatized and little is known of its importance and adequate use.

Due to this, Guatemala’s Sugar (2015) began a Sensitization Campaign to promote freedom of association through an educational campaign, informing and sensitizing, within a Social Dialogue Framework. This initiative has a three-part voluntary partnership between the government, employers, and employees.

This campaign was launched following a complaint made to the International Workers Organization (IWO) from an alleged breach in freedom to associate (2012). Since the incident a memorandum and roadmap (2013) was developed and the starting point is the educational campaign to promote freedom to associate and collective bargaining.

5. Public Private Partnerships The Sugar agroindustry provides an important contribution to the country’s economy, through promoting and fomenting good labor practices that create formal, dignified, and decent employment.

Notwithstanding, these good practices should not be concentrated, but replicated in other work areas and sectors where this compliance is not yet achieved, particularly in fulfilling basic legal requirements.

To achieve this aspiration, the Ministry of Work and Social Provision has created and fortified its Private Public Partnerships (PPP) that enable formal agreements that back compliance altions Labor labor relations.

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4. Freedom of association

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Para cumplir con esta aspiración, el Ministerio de Trabajo y inin in labor relations.

Following the aforementioned, 2014 saw the beginning of the Permanent Program for Legal Work Promotion directed towards the agricultural sector, and industrial sugar cane cultivation, harvest, production, and transportation.

The Program began with two trainings attended by 122 persons representing the sugar mills and independent sugar cane suppliers.

Among the training’s results were the increase in requests for approval from the General Work Inspection from the companies present. Prior to this training, only two requests had been given, and following the training this increased to 50 requests.

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Sugar Cane Providers Training, October 2014

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As part of the program, the Ministry schedules inspections focused on sugar supplying companies (372), and the most important result was that 81.99% of them comply with the law. Of the 14 aspects for evaluation, the most relevant are as follow:

Corporate Social Responsibility is not an end in and of itself, but a management model for shared responsibility between employees and the corporation

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Relevant aspects checked

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