Salaries and benefits

FFC does not discriminate basic salary or remuneration on the basis of gender. No intentional differentiation is made in benefits provided by FFC according to the type of employment contract. Only female employees are given maternity leave. A total of 82 female employees were eligible for parental leave, out of which six female employees availed maternity leave in 2016. The return to work and retention rate of employees after availing parental leave was 100%. Moreover, the employees who took parental leave and returned to work remained employed for more than 12 months after their return to work.

We reward employees on the basis of performance and their role in the advancement of company objectives. The ratio of basic salary and remuneration is one to one at FFC. All FFC employees received performance appraisal in 2016. We regularly monitor benefit plan obligations for relevance, compliance, costs and stability to ensure that the benefits are in line with the operating environment.

We maintain separate funded pension and gratuity schemes where all obligations of funds are financed by FFC. Our all eligible employees who complete the qualifying period of service and age are benefited by these schemes. The trustees administer these funds. The annual contribution to gratuity and management staff pension funds are based on actuarial valuation. The defined contributory provident fund is for all eligible employees for which FFC contributions are charged at the rate of 10% of basic salary. The employees also contribute 10% of basic salary to provident fund. The provident fund may be reimbursed after an employee leaves the organization or may be transferred, as per the convenience of an employee. We spent an amount of Rs. 766 million on defined benefit plan obligations in 2016. The benefits are provided to full time employees including management and staff. These benefits are not offered to contractual employees.

BY DEVELOPING SKILLS AND TALENT

We provide training to employees at all levels within the organization to nurse their talent and knowledge base. We believe that motivating and training our employees will contribute significantly to their skillset and success of our company. We consider it important that employees have the opportunity to realize their potential and develop a successful career. Based on this thinking and principle of equal treatment and equal rights, we offer our employees internally and externally conducted specialist and interdisciplinary training and qualification measures.

At FFC, HR development framework focuses on training and education of employees, which consists of a three-step-process, first assessing employees’ competencies, training them for their job, and then encouraging the development of employees through education. This helps to identify skill gaps within the organization and looks to addresses those gaps; ensuring the right people are in the right jobs for ensuring long term sustainability of the company.

We provide our employees career development opportunities, which goes beyond training. We have formal talent management programs which help us map employees’ skills and match them to new opportunities. This also supports effective succession planning, particularly for senior and other strategic positions within the company. The employees enhance their skill set and get lifelong learning through a management skill development program throughout the career, provision of long term leave for improving professional qualifications, offshore technical services and deputation to diversified businesses.

BY PROVIDING A DECENT, PRODUCTIVE PLACE TO WORK

We do our best to provide a decent and productive workplace to our workforce. Regular health and only on their suitability for the open positions and their individual potential for a successful future at FFC – in line with the corporate strategy and objectives. However, as a common practice, while hiring junior level staff/apprentices at plants, relaxation is given to the local population to encourage the locals. Likewise, in the marketing group, preference to post locals, from among the selected ones is also given due consideration to resolve communication issues/language problems. No senior management employee at locations of significant operation is hired on the basis of location or domicile. No specific quotas for women, specific nationalities, ethnic minorities or special age groups exists for senior management, Board and Executive Committee. All the candidates are evaluated and selected on the basis of the same list of criteria. However, to promote economic independence of people with disabilities, FFC extends employment opportunities to such persons along with special health care and ancillary facilities. During the year 54 people with disabilities were employed by the Company. 

BY INVESTING IN HEALTH & SAFETY OF WORKFORCE

Safety of our people and processes is our top priority. FFC always endeavors to educate employees on health and safety topics to ensure maximum level of health and safety of its labor force. The protection goals as well as health and safety aspects are monitored and reviewed on an ongoing basis. The operational aspect of health and safety practices in manufacturing units are governed by the GM (M&O) of the manufacturing units. HR head at plant site is responsible for fair labor practices, policies with respect to regulations and laws as well as the other activities for the benefit of the employees. FFC has a system in place for risk assessment of operations and committed to preserve its employees’ health by avoiding accidents as much as possible. We have long standing safety culture at plant sites along with a detailed reporting of process and plant safety. We carefully track incidents, complaints received from stakeholders and take prompt action for resolution in justified cases. During the year, no complaints relating to labor practices were filed. 

Continuous efforts to prevent accidents at work are an essential part of our production activities and require constant motivation of employees by line managers. As a result of the high commitment to health and safety the incidents concerning health and safety issues have decreased over the years and our plants are producing record of safe man hours over the years. 14.81 million Man-hours of safe operations for employees and 23.53 million Man-hours of safe operations for contractor employees were also achieved as of December 31, 2016 at our plants only through employees’ commitment and safety first strategy.

Urea manufacturing is a clean, safe and close process. Workers only come in contact with the finished product ready for shipment and there is no major risk of occupational diseases nor did any such known disease occur related to the process. However, the regular technical controls and measurements are carried out at workplace to ensure safe working conditions and regular health checks are conducted for production employees. FFC offers discounted health programs and attaches great importance to protecting employees from workplace accidents. Line managers are responsible for training employees in safety and identify the extent to which employees are familiar with the safety procedures at processes. 

Regular trainings are conducted on various safety topics including safety culture reinforcement training for management & staff, emergency response & rescue handling, general safety trainings for contracted out employees, contractor supervisor trainings, safety culture reinforcement trainings (contractor employees), safety orientation for interns and apprentices, safety orientation for plant visitors & guests, Behavior based safety training, training on job safety analysis, hazard identification risk assessment and determining control (HIRADC), noise induced hearing loss awareness, energy management, environment protection & pollution prevention, disaster response training and excavation safety. The implementation of such trainings is also a clear signal to improve workplace safety. Not only do employees learn how to behave more safely and prevent accidents through targeted training courses, but – by also involving managers in the process – a strong emphasis is placed.

A Worker’s Council Committee under the Industrial Relation Act exists in which worker’s representation is 50%. The functions of the committee include promotion of security of employment for workers, monitoring health & safety conditions and job satisfaction levels. Meetings of the Worker’s Council Committee are organized as per Law. Moreover, a Health & Hygiene Committee also exists and the committee visits the areas periodically to improve the standards. As per industrial act, this council operates at the facility level. To promote health and safety at plant site, in addition to minimum legal requirement, the company has in place different forums and committees to discuss and take action on health and safety issues. All the workers get representation in these committees through their supervisors and line managers.

The company accounts first aid injury in the injury rate and the lost days means schedule work days, lost day count begins the day after the incident. The formal agreements with CBA covers health and safety related provisions. The extent of coverage of health and safety topics in the agreements is almost 80%. Moreover, all the employees of the company come under the umbrella of an extensive medical policy which has been formulated in the light of the health and safety requirements of The Factories Act, 1934.

BY PROCURING LOCALLY

Suppliers are strategic allies who support our success and ensure consistent provision of products to our customers. We believe that the collaboration makes the difference. Our supplier relationships go beyond the purely commercial sphere and include a mutual understanding of what it takes to promote good practices and pursue responsible and sustainable development. The procurement function at head office and plant sites is responsible for management of procurement practices in line with Company policies. The procurement policies are evaluated regularly and updates are carried out, if required.

We procure most of our requirements from the locations in which our respective operating facilities are located as far as qualitatively compatible, technically feasible, and economically justifiable. This way, FFC’s activities support the economic development of the areas concerned. FFC is not particularly dependent on any of its suppliers except the supplier for natural gas which is basic raw material for fertilizer manufacturing. Our suppliers consist of local suppliers and foreign suppliers. The major raw material and other components which can be easily purchased from Pakistan are procured locally while the materials and components which are not available in Pakistan are purchased from abroad. Our 76% purchases are from local suppliers and 24% from foreign suppliers. To improve our supply chain management and facilitate our suppliers, we launched eProcurement System in 2016. The suppliers and contractors can register as part of our supply chain with respect to goods and services, can gain information on opportunities and submit bids in addition to having access to other useful information.

BY WORKING ON SUSTAINABILITY IN SUPPLY CHAIN 

We are well aware that today’s complex business environment and management of impacts beyond organizational boundaries require leading supply chain management methods. Incorporation of sustainability criteria in selection, working with suppliers to upgrade working conditions helps to limit exposure to unexpected events, negative environmental and social impacts and supply disruption, while building long-term core competence and effective management of supply chain.

We have a sustainability criteria to select and manage our suppliers, outsourcing partners, and service providers. This selection criteria takes into account conditions relating to sustainability factors such as, environmental management, working conditions, respect for human rights, complaint management, safety standards, and financial creditworthiness. The upgrading of the criteria is under consideration to include more comprehensive criteria by including other factors relating to labor management practices, human rights and society related practices. We plan to educate our supply chain partners by sharing the criteria through inclusion of the relevant suppliers in FFC’s supplier assessment process. In order to monitor how suppliers deploy FFC’s sustainability criteria, FFC will require the major suppliers to produce third party verification with respect to FFC’s sustainability criteria and may also carry out on-site audits in the future, if deemed necessary. This supplier sustainability criteria will strengthen the efforts and will provide a reference framework for social and environmental protection in supply chain. As part of its supplier relationship management and to strengthen its vision and approach of sustainable supply chain, FFC regularly hosts trainings for its haulage contractors as well as dealers. Apart from creating awareness, these activities help FFC to engage with its supply chain for the deployment and realization of different activities. We are focused to work with suppliers and partners to improve the entire supply chain from a sustainability perspective.

The ultimate governance of strategy in relation to supplier management lies at the highest level of the management. The respective departments deal with suppliers in line with the supplier management strategy of FFC. FFC evaluates the effectiveness of its management approach through feedback from various stakeholders and surveys conducted.

Our investment agreements include human rights clauses and undergo human rights screening. All major investments must be approved by the Board of Directors. The Board Committees recommend the investments proposal after detailed working and review which is based on financial, strategic and sustainability criteria, the last of which also include human rights aspects. Moreover, the regular procurement also takes into account the sustainability criteria to screen the new suppliers. 282 suppliers, who applied and registered during the year, were screened against existing sustainability criteria during the year.

FFC is not aware of any negative environmental impacts of supplier’s operations during the year. FFC is committed to positive social impacts through its labor practices, respect for human rights, societal interventions, responsible marketing, and encourages its supply chain partners to engage in such activities. The company is not aware of any negative social impacts of its suppliers’ activities during the year.

BY RESPONSIBLY MARKETING PRODUCTS

We market our products through our distribution channel to make it as easy and convenient as possible for our customers to buy our products. We have in place basic standards for marketing our products to ensure that our products meet the expectations what we’ve led our customers to expect from us. FFC constantly monitors and carries out regular reviews of all business aspects and processes in order to ensure that they continue to conform to our commitment to sustainability. We aim to produce only quality products that correspond to the International Standards and are accompanied by the required labeling information. The product marketing responsibility lies with the marketing department and the Chief Executive & Managing Director (CE & MD) is responsible for the impacts and marketing of products.

We are aware of the fact that innovation, customer focus, customer facilitation and provision of genuine products are extremely important to meet and exceed the customer demands. Last year, we initiated SMS service to give information about pricing and shipments and revolutionized order placement and payment processes by introducing an electronic payment mechanism in collaboration with associated company Askari Bank Limited through ASKSONA Card. We also introduced security labels (Pehchan Sticker) and special colored stitching thread, which is changed after a specific time to control dumping, malpractices and pilferage of product.  

The Provincial Fertilizer Control Order requires printing of information about net weight of the bag, chemical name of the fertilizer inside the bag, chemical composition of the fertilizer, manufacturer and marketer and price. We have dedicated staff trained on labeling as per applicable laws and regulations. During the year, all products were in compliance with labeling requirements specified by the laws and regulations.

FFC adheres to laws, standards and voluntary codes related to advertising, promotion and sponsorship. The voluntary codes include but are not limited to fair competition, ethics, social norms, cultural values and honest disclosure of benefits/features of the product. The company reviews its compliance with the laws, standards and voluntary codes on a regular basis which are dependent on the nature of the activity. There were no incidents – neither offenses nor criminal investigations – on account of breaches against applicable law and voluntary codes of practice in relation to information about the labeling of products and services. Similarly, FFC is not aware of any incidents in which there have been infringements of laws/regulations in terms of the procurement, use or supply of products and services.