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HINOPAK MOTORS LIMITED Global Compact - Communication on Progress: June 2008~ June 2009 Principle 1 Business support and respect the protection of internationally proclaimed human rights. Commitment Policies, Systems, Processes and Actions Performance Programs Hinopak Motors Limited is Health and Safety Systems Leadership Guidance / Buy-in • Safety and Health Policy was adopted; affirmation by our Managing Director in July 2008. committed to respecting and protecting the dignity • Our Safety, Health & Environment (SHE) Committee remained steadfast in leading the overall upkeep of our SHE program; of people in all its areas of specific function teams/ERP (Emergency Response Plan) regularly met and given training. operations. All • Canteen Committee reorganized in May 2009 to improve quality and quantity of food, hygiene and service. Action/measures stakeholders are assured started based on employee dissatisfaction feedback. of sincere efforts to uplift conditions with regard to • Recreation Committee reorganized to improve employee wellness program. health and safety, provide sound labor-management Healthy and Safe Work • Personal Protective Equipment (PPEs) required of all persons entering the plants; counselling and warnings given for non-use. relations and participate in Environment human resource/ • Infrastructure required for maintaining safe working condition is ensured. Fire hydrant system upgraded and safety hoists community development. purchased. • Our Body Operation Plant shop floor housing 800+ personnel at any given day was made bigger ensuring improved working conditions. • Provision for fire/safety exits ensured in recent plant construction as well as other buildings where overlooked. • Recreation facilities upgraded and added; Recreation Committee reorganized. Number of employees patronizing wellness facilities increased. • Employees participated in inter-company sports competitions/matches in table tennis, cricket, etc. • Daily morning exercise introduce in 2008 had reached company-wide level participation. • The standard temperature (28C) is followed at Hinopak to mitigate negative health impact from fluctuating temperatures continued. • Lighting in work offices improved by further tearing down of cubicles. • At least 10 "no smoking" areas were isolated, all displaying posters indicating in the local language: "smoking kills." • Health awareness activities were attended by estimated 460 employees from January~December 2008. Program included cholesterol, obesity/BMI, diabetes, and oral cancer training/camps, with follow-up check-ups wherever applicable. • Consumption of drinking water is at safe level in Hinopak; regular checks are conducted to determine its fitness. Monitoring and Awareness • Safety Patrol plan (management-led) is in place for 2009 implementation. About eight safety patrols conducted in 2008. • Accident and incident monitoring system given emphasis towards a safer environment. "Near-miss" incidents tracked, reported and shared to avoid occurrences. • Daily update, monitoring and maintenance of our Safety Calendar to highlight safety status continues. • Mock drills given to employees and Emergency Response Program (ERP) Teams to check readiness in case of emergencies. ERP Teams include Rescue, Firefighting, Spill, etc. • Safety Guidelines were published both English and Urdu languages; also visually illustrated for easy understanding of our workers. • Periodic safety trainings given to employees; safety reminders/guidelines part of our employee orientation program. • Daily morning safety meetings led by team leaders/executives are conducted at shop floor level, after morning exercises. • Japanese 5-S concept highlighting organized, clean and safe work environment continuously reminded to employees through peer training and programs. • Occurences of fatal/major accidents shared with parent companies; learnings and adoption of new measures from experiences shared by other Toyota/Hino affiliates observed. HINOPAK MOTORS LIMITED Global Compact - Communication on Progress: June 2008~ June 2009 Principle 1 Business support and respect the protection of internationally proclaimed human rights. Commitment Policies, Systems, Processes and Actions Performance Programs System Maintenance, Citation • Hinopak' initiatives cited by the Employers' Federation of Pakistan through its "Best Practices Award on Occupational Health, Safety and Environment" organized in April 2009. • Our certification in OHSAS 18001 received in July 2008 is the first in the industry in Pakistan. Basic Employee Facilities • Ever compliant with Pakistan's Factory Act requirements, hygiene cards of our workers are maintained. Medical Coordinators staff our in-house clinics and ensure that all requirements are met. • Emergency medical assistance was permitted over and above the medical insurance coverage and limit to medical reimbursements provided to our employees and their dependents was increased by 50% in 2008. • 13 employees currently enjoying our subsidized MBA program currently in collaboration with two of Pakistan's premier business schools. • Employee training/development given to 1,400 employees equivalent to approx. 25,000 training hours in 2008. • Eight (8) employees are sponsored (USD 2,081 each) annually for religious pilgrimage (Hajj). • Cash awards and other monetary benefits for 2008 employee performance provide despite the company's financial constraints. • Permanent employees getting married are given token gift from the company. • Monthly attendance bonus is given to permanent workers. • Hinopak employees, permanent and contract (including contractor's) are insured. Employee Quality of Life, • Recreation provided the much-needed respite and relaxation for our employees. Around 500 employees in 2008 enjoyed each Wellness others' company and came back recharged and more productive. • 17 female employees who could not join company-sponsored out-of-town picnics were given separate opportunity for recreation. • Additional gym/recreation room was opened in our Body Operation Plant, allowing more employees to enjoy this facility. • Leave Fare Assistance is provided as benefit to our employees to allow them an amount for their annual leave. Employee Satisfaction • Employee feedback sought through various surveys related to employees' decent work requirement, like "morning exercise survey", "stress level", and "company's climate." Action plans/implementation based on results gathered. • We benchmarked our best practices against other companies'; participated in formal and informal executive compensation and benefits survey, initiated a workers's salary survey-- all in the name of looking for ways to improve our employees' employment terms and conditions. Internal Communication • New way of reaching out to employees devised; our HR personnel have started physical visits to personally meet colleagues and hear their problems. Actions include forwarding feedback to other functions if need be, for implementation. • An exclusive information room ("Kokoroe Kumra") depicting function-wise initiatives was established for employee and public consumption. • More walls were dismantled to improve the flow of communication within the office setting. Total Quality Management Continuous Improvement • Monitoring and maintenance of our Quality Management Systems ensure better working systems and processes for employees. Our QMS certification is valid till 2010. • Daily, half-hour training at shopfloor are conducted through our Quality Assurance Department to educate personnel on process improvements. Industrial / Employee Relations Fair Investigation • Formal Grievance Handling System was drafted, where both workers' and management representatives are to be involved to exclude bias and/or ensure fairness. • Complying with the Industrial and Commercial Employment (Standing Orders) Ordinance 1968, also ensures objectivity in following the procedures for disciplinary actions against misconduct. Hinopak employees are assured of their rights, fair treatment and the opportunity to be heard. HINOPAK MOTORS LIMITED Global Compact - Communication on Progress: June 2008~ June 2009 Principle 1 Business support and respect the protection of internationally proclaimed human rights. Commitment Policies, Systems, Processes and Actions Performance Programs • Our Whistle Blowing Committee continued to receive, investigate, analyze and act upon if required, the 14 complaints/ suggestions received for the period beginning April 2008 and ending March 2009. Employee Recognition • Monthly recognition of employees in punctuality and attendance since 2008. One year achievement award in June 2009 for 26 workers and executives. • Retiring employees given farewell parties. Security • Wide use and provision of security services to protect our people and properties has been one of our prime responsibilities. This service extends to the protection of our top management in their residences. • Hinopak's foreign visitors are always given extra security advice/travel advisory and support. • A Security and Communication Team and system are in place to handle emergency and risk situations. • Security measures improved in offices and plants; installation of walk-through metal detectors, gate and road barriers, speed breakers, CCTVs, rerouting entry points for employees and public. Employment Policy for • Hinopak compliant with the Workmen's Compensation Act relating to disability. Workers who could not continue certain job due to Disabled People disability met at work are