UNGC_COP_April_2010 - United Nations Global Compact

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C S GARMENT, INC.

Communication on Progress ( COP ) 2010

Human Rights Relevant GRI Indicators

Business to support and respect the protection of internationally proclaimed human rights within their sphere of influences.

SA8000 Certification

CS Garment, Inc. has very strong respect for human rights. It has put its heart and resources in making sure that all its policies and programs are aligned with the principles of Global Compact. Aside from the Code of Conduct, CSGI add more value to its social advocacy by submitting itself to an internal social audit called SA 8000 to ensure its compliance with the international and applicable laws of the land. CSGI SA8000

Management System is designed to guide managers to perform active roles in administering employees to support the company’s objectives regarding social and environmental accountability.

CSGI SA8000 Management System is a picture that our company incorporates the environmental and social responsibility into our operations to strive for a balance between the environmental, social and economic performance of our business. It means that we are working with employees to improve the quality of their life. Much more, this system helps us discover strengths, weaknesses and potentials to develop which we can use as tools for continuous improvement.

With this, all parties will be benefited. Employees stay in an environment conducive for working and receiving all the benefits mandated by the national laws. It will lead to confidence that the supplied products are produced in an environment that is safe , enjoyable and healthy for all people around . Furthermore, our company can achieve international standard hence, enhance credibility for wider expansion and greater opportunity for stability and awards. The system is consist of Policy/ Communication/

Planning and Implementation / Performance Review and Evaluation/ Corrective and

Preventive Action.

Regular Management Review

Top management of C S Garment, Inc. periodically reviews the adequacy, suitability, and continuing effectiveness of the company’s policy, procedures and performance results vis-a-vis the requirements of the standard and other requirements to which the company subscribes. System amendments and improvements are implemented where appropriate. It is our concern in our management to create exciting organizations that are substantially different than the other garment industries of which we compete in order to attract and retain the best and brightest. Herewith are the things we do :

We have Management Review so that we can all the times accurately reflect where the organization is within its business environment. During the

Management Review , we will know what to prevent and correct.

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Our ISO helps us to have continuous improvement . Surveillance audit will detect whether or not we stick to our vision and mission by checking if the quality procedures are being followed and practiced.

By fostering an open and honest relationship with staff, a responsive, flexible workforce is in place. We have an opened door communication . This gives every one chances to report important concerns to the management. Non conformities to our Quality Policy and SA8000 Policy are preventive through join effort of the management and the workers.

Effective cross-training and education programs have been put in place. This allows the company to respond rapidly to workflow peaks and valleys and its changes . Training, teaching and coaching efforts have broadened our focus from job-specific development to one where overall process knowledge, interpersonal and technological skills, leadership development, methodology practices, management skills, and succession planning are provided.

Policy on HIV/AIDS Program

CS Garment Inc., consider the workforce as best assets, thus the company is there to protect them against health debilitating illnesses that may cause serious losses on their health and also to the company itself. In relation to this, CSGI develop a policy for HIV/

AIDS that ensures provision and sustainable implementation of HIV/ AIDS Program in the workplace. It is in compliance with Republic Act 8504 known as (The Philippine Aids

Prevention and Control Act of 1998).

CS GARMENT INC. is committed to uplift the lives of all employees and maintain their optimum level of functioning in day to day living. It believes that, through this HIV/AIDS policy the employee’s dignity and self- esteem shall be protected at all times as respect to their human rights. CSGI shall ensure the pro-active campaign at the workplace that extends to their families, relatives and communities. In order, to achieve this goal the company shall provide an accessible information, resources and support by creating an understanding, caring and non- discriminatory workplace environment.

CSGI has specific provisions like proper education and heightening awareness regarding the risk factors, mode of transmission and prevention related in HIV/AIDS.

Orientation and updated issues are discuss to all employees through echo seminar

We also provide training of key persons that includes Health Personnel, Supervisor,

LMC Committee Representative, Family Welfare Educators. and Managers. Clinic

Personnel conduct lectures and counseling on HIV/AIDS in a non- discriminatory and non- malicious way. Since CS Garment, Inc. has Family Welfare Program, we have available condoms in the Clinic, provided to the employees at a low cost through salary deduction. The company doctor provided an accurate demonstration and discussion of advantages and benefits they could get in the prevention of spread of HIV/AIDS. In the

20 years of CS Garment, Inc., we have no record of anyone diagnosed to have

HIV/AIDS due to our continuous awarene ss program in collaboration with GO’s and

NGO’s.

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Code of Conduct

Since inception, one of the vital principles of C S Garment, Inc. is the protection and high respect for human rights thus we created the CODE OF CONDUCT that adheres to compliance of all applicable laws, pay team members fairly in accordance to law, prohibition in the use of child labor, no discrimination on the basis of personal characteristics, working conditions are safe and do not impair the health of the employees, constitutional rights of the employees to form LMC and join mature and responsible trade organization of their choice, prohibition in the use of corporal punishment, forced labor, physical as well as mental coercion, team members shall be provided with service and assistance in matters that affects their welfare and interest, provide team members with fair and considerate treatment, job satisfaction, good working condition, friendly environment and recognition for a job well done. Based on personnel record, we have not encountered any labor disputes or any labor unrest for the past 20 years due to the commendable harmonious labor-management cooperation which everyone from bottom to top level is taking care of. We have no pending complaints from the government labor office since 2008 up to 2010.

Terms of Engagement with the Suppliers

CSGI Social Accountability System is accessible not only to the employees of CSGI but also for those interested party. (e.g Suppliers, Customers , NGO and Government

Agency ). The communication includes the result of the audit, monitoring data and the performance against the standard. Our company believes in the value of alliances networking and the nurturing of entrepreneurial connections. We made sure that our suppliers are aware and compliant to the elements of the SA 8000. Orientation and

Awareness Meeting are regularly conducted in the office attended by various suppliers and service providers of the company. Regular plant visit to suppliers were also done by the Purchasing Head and the SA8000 Management Representative to check and verify the present practice and policies which must not violate any law that may result to noncompliance of the SA 8000 elements.

In the past years, CS Garment, Inc. had introduced the Global Compact principles to the suppliers but in year 2010, we have polished a more detailed elements that of SA8000.

Around 85% of the suppliers have been oriented and plant visited to made them aware how serious CSGI in complying to the universal mandates of law.

C S Garment, Inc. is not complicit in human rights abuses.

Triple Treat for strengthening the advocacy to stop human right abuses.

For twenty years, CS Garment, Inc. has successfully passed and implemented three vital certification, evidence to its strong support to stop human rights abuses. These are the AVE Sector Model for Social Responsibility, Code of Conduct and the SA 8000

Certification. The adoption of these three important factors have became a milestone for the company ’s unyielding support to promote human rights.

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Labor Relevant GRI Indicators

Business are asked to uphold freedom of association and the effective recognition of the rights to collective bargaining.

Labor-Management Council

We can proudly say that the company’s Labor-Management Council ( LMC ) has been very cooperative and understanding through the years especially during the time of global financial crisis up to present. Every two years, the employees are conducting the voting of Committee Members. Every section and department had their own representative to thresh-out each and every need of the employees. A committee fund was provided to help their colleagues in simple financial needs. Aside from company benefits, any team member in financial need can borrow money in the committee fund provided they have pay it in six (6 ) months period without interest.

The presence of LMC encourage a collaborative behavior among various levels of the organization. The philosophy is that greater cooperation between labor and management on matters of mutual interest and concern will create a more satisfying and productive workplace. Company respects team members constitutional rights to join and establish responsible and matured employee organization. We also have open door policy which enhances more the harmonious relationship between labor and management. The measure of cooperation was yielded in the company's increase in production capacity of about 50% in year 2009. Company efficiency has gone up from

67 % in 2008 to 85% in 2010.

Suggestion Box

Suggestion or complaint box placed at the employees locker room tracks and responds to employees needs and internal concerns affecting their welfare. Although we already have the"open door policy" in the company, still we allow the use of suggestion box. So far, in 2008-2010, we got no complaints at all. CSGI believes that the presence of suggestion box is one of the anti- corruption strategy also. Employees are allowed to report questionable practices inside and outside company premise.

Elimination of all forms of forced and compulsory labour.

Regular Review of Personnel Policy Manual

A committee composed of Personnel Manager and Department Heads are annually reviewing the Company Policy Manual. Every new rule has been discussed thoroughly to verify if it is still in accordance to the law of the land. The committee members are very particular with the compliance to the labor law. Review on the hours of work and the overtime are checked properly. It allows 8 hours work per day and one

(1) day rest every week. Workers are requested to sign an overtime requisition slip to signify their willingness to extend extra working hours with pay especially if there is an urgent need in the production. Personnel Policy Manual defines the hours of work and rest days. Computation of basic pay, overtime, holiday pay etc. together with all the benefits and compensation were also checked and reviewed if correct. New Wage

Orders were verified if already implemented to all, across the board, a decision which

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page 5…../ not all the management of every company implemented and approved. The new policy announced by the government were discussed by the committee also for immediate implementation. The content of the personnel policy manual is 100% compliant to the mandate of the government and the rules of the company itself.

Effective abolition of child labour

Strict and Fair Hiring Procedure

Even in placing advertisements, we made sure that 18 years above are posted.

We hired only those 18 years and above and those who have finished secondary high school to do non-hazardous production work. HR Staff required for original birth certificates for age verification. As a general policy, young looking applicants are subject for further verification. Submitted copies of school diplomas are sent to their respective schools to check if they really graduated secondary school and to know the correct age.

Enclosed with our verification letter is a blank form and a return envelop with ready stamps so that schools officials can promptly send their response. Random background check was conducted and out of 30 applicants, we have 8 young girls who were refused admittance and request to apply after they reach their 18 years old. Rigid interview is conducted by HR staff for suspected young workers

Accepting On-the Job trainees from various Vocational Schools and University were also screened properly. A written letter from the university Dean or Superintendent must clearly indicate the age of the students who will undergo the practical training in the company and the training hours are also required so that the student- trainees will be placed in a job that are non-hazardous in nature.

Child

–friendly firm

We have received three recognition already as Child-friendly Firm. The company was cited as Child-friendly firm due to various programs for the benefits of the children not only of its employees but also the children in the community. We have joined advocacy like child-labor free company, we have donated various good and items for the children. We have sponsored also programs benefiting the street children in the community. In every calamity disasters in the country, we in CS Garment, Inc. are very much concerned not only to the adults but moreso on the children that have been affected by this devastating calamity happening in the Philippines. Some of the child- friendly activities are through the collaborative efforts of CSGI employees, management and the GO’s and NGO’s. Proud to say that around 30 new companies have consulted

CS Garment, Inc. because they like to set-up and start Child-friendly program to their respective companies. The child-friendly programs we have cooperated, has helped thousands of children inside and outside our community.

Dual Training System Program

We have initiated major interventions to bring about free skills training and education to several hundreds of out-of school youth particularly those who belongs to indigent families in far flung regions as far as Visaya and Mindanao. The company introduced

Dual Training System ( DTS ) program since 1995 up to present although the only

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page 6…./ difference now was the lesser number of trainees due to cost-cutting scheme. For CS

Garment, Inc, we believe that DTS is an innovative approach to provide the foundation in developing multi-skilled and proficient workers. We provide training allowances equivalent to 75% of the prevailing minimum wage in the country as required by the

Technical Education and Skills Development Authority. (TESDA). In year 2010, over 500 students

–trainees completed training in DTS. By graduation time, 95% of the trainees are assured of employment not only locally and abroad but also as self-employed. DTS initiatives helps eradicates poverty prevents social cancer like juvenile delinquency andunemployment among the youth. Currently, we have graduates who are assigned in key position like Pattern Maker, Computer

–aided operator, Sample makers, QA's

Trainers, Supervisors, Merchandiser and some are self-employed. TESDA has recognized the company's effort thru "Kabalikat Award" and has put C S Garment, Inc. in the " Elite Circle of Trailblazers of the Philippines" practicing Dual Training System

Program.

Informative Materials cum Awareness Tools

Informative materials regarding prohibition in the use of child-labor are posted at designated areas of the factory. (eg. posters from ILO that child must be taken care of and has the right to play). Posting of promotional materials visible to all confirms company commitment to combat child-labor. The materials are visible not only to employees but also to the stakeholders and visitors who frequents the office.

The elimination of discrimination in respect of employment and occupation.

Provision of Equal Employment Opportunities ( EEO )

The principles of Equal Employment Opportunity ( EEO ) is integrated in our Personnel

Policy starting from recruitment and hiring up to salary payments, promotions and training opportunities. CS Garment, Inc. has a rule not to discriminate anyone. Hiring was done regardless of character, sexual orientation, religion, gender, nationality, ethnic origin, political belief etc. This rule on discrimination is written in our Personnel Policy

Manual # 001 under Recruitment and Hiring. Consideration is given to old employees and those who just recuperated from serious illness ( eg. cancer ). Company also hires physically challenged individual. They are given opportunity to work in the factory. We have gained their loyalty and it can be justified by their length of service with CSGI.

Conduct of annual Drug Free Workplace Seminar

In valuing our Human Resources, the company has formulated a comprehensive drug abuse prevention program that will prevent and control alcohol and drug abuse in the workplace. Seminar attended by all employees was conducted by an accredited Drug

Testing Company after which drug testing of employees chosen at random follows.

Any employee who voluntarily request assistance of the company in dealing with drugs or alcohol problem may do so without jeopardizing their continued employment, provided they strictly adhere to terms of their treatment and counseling. A procedure to test employee was also written in the Drug Free Workplace Policy. Initially, random selection of 20% of employees had been tested and all with negative results. Before the end of the year, we will conduct again drug abuse related seminar. In year 2008-,

2010, we had 60% of manpower subjected to drug testing. Nobody was positive.

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Maternal Care

Company has Family Welfare Program where pregnant employees are taken care of.

100 % of the pregnant employees gave birth to healthy babies. Even if they are pregnant, they are given equal opportunity for work, training, promotion etc.

Paternal Leave

The company takes care not only female but male employees when it comes to family matter. Male employees whose spouse/partners gave birth are allowed seven (7) days paid leaves when wife gives birth as mandated by law. We allow leave extensions to take care of the spouse and newly born child.

Wages, Compensation, Training

Opportunities and Promotion

Regardless of sexual orientation, employees are receiving equal compensation for work of equal value. Favors are not given to any employee with respect to wage, compensation, promotion and training opportunities. We have written policy under "

Promotion" where any vacancy in the company is offered first to qualified team members instead of hiring new applicants. The management seek recommendations from the immediate superior and base the promotion on previous and current performance appraisal. On record, 87 % of the Managerial, Supervisory-level team members, staffs came from in-house promotion. They are considered high-performers of the company.

Committee on Decorum and Investigation ( C O D I )

Company also created Rep. Act 7877- known as Anti-Sexual Harassment Act of 1005.

Company organized a Committee On Decorum and Investigation ( CODI ) which focuses on Sexual Harassment and Violence against Women. It recognizes the value of women in our society especially their role in nation- building and guarantees full respect for human rights of every individual. The committee is created to maintain sound work environment free of sexual harassment and all forms of sexual intimidation and exploitation. In keeping with these commitment, the top management in cooperation of those in the supervisory level, committee members and rank and file employees are bound to help in the prevention of sexual harassment and any form of intimidations and exploitations. CODI function is to receive complaints, conduct further investigation and submit corresponding recommendations for submission to Advisory Board subject for appropriate action. " Retaliation Clause" is written in the policy wherein any person whom a complaint of sexual harassment is filed cannot discipline or change the work assignment of the complainant or intentionally pressure or threaten the same otherwise the violator will commit the retaliatory acts under Article 248 (f) of the Labor

Code. No complaint or record on file regarding violation of this article 7877 from year

2008-2010.

Fair treatment in Workforce

Throughput: Our people who will do the processing of our products are having correct skills level. They have experience and expertise in the appropriate areas of enterprise.

They have the ability to adopt and cooperate. Management have the contingency skill so they can solve problems that arise in the production. the quality management system have procedures to ensure that the organization can undertake conversion process efficiently.

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Environment Relevant GRI Indicators

Company to support precautionary approach to environmental changes.

Tree-planting activity and Coastal Cleaning

CS Garment, Inc. has been an active participant of the yearly International Coastal

Cleaning and Tree-Planting activity spearheaded by the Municipality of Rosario and

Municipality of General Trias, both located in Cavite. Our employees are joining other companies and the local government unit in their aim at planting around 1000 trees all over the field as part of the environment protection.

Solid Waste Management Program

The company is situated inside the government owned Philippine Economic Zone

Authority ( PEZA )and company is required to subject itself to programmatic compliance procedures and secure an Environmental Compliance Certificate ( ECC ) issued by the

Department of Environment and Natural Resources ( DENR ). Companies are required by DENR to submit a Quarterly Self Monitoring Report to Environment Management

Bureau of the DENR. Republic Act No. 6969 is the Waste Management Program where waste materials of the company like cut fabrics, plastics, dust, twigs, office supplies, food wastes etc. are properly segregated, collected, transported and disposed in a controlled dumping site accredited by the Dept. of Environment and Natural Resources

( DENR).

Hazardous materials like battery of UPS ( acid and lead ) and fluorescent light ( which contains mercury that is toxic ) are collected by an accredited transporter to ensure that necessary process will be done to the waste materials to avoid damage to environment.

PEZA-DENR has strictly controlled all deliveries of chemicals inside the zone. Any chemicals being used by various manufacturing firms are subject for clearance by their office before use. PEZA assigned guards at the gate are inspecting all deliveries.

Energy savings, User-friendly machinery, tools and equipment

Company machinery, tools and equipment are user –friendly. Sewing machine work height can be adjusted at elbow height to reduce backpains. ( can be set at 750 mm to

900 mm measured to top of table ). It can be operated with automatic threadTrimming and light foot lifting. Special machine like buttonhole, button attach, embroidery are easy to operate since they are all automated. This makes any sewing operation faster.

It also applies to the automatic spreading machine with fabric slicer. Machine is programmable to the required length of the markers. These state-of the art machinery makes it easier for the operator or worker to do the work. It reduces fatigue that employees can still attend to family and household chores. All machine has safety devices like emergency stop button switches, machine houring, safety guards which protect moving and powered machine components. It has protection from accident contact, safety signs and markings. We had a noise test that passed the pressure level that is minimal below 85 decibel. Steam boilers has no emission because the company is using portable electric boiler. Machine has its pulley guards, eye protectors and automatic control switches that protects the user from harm or danger. Machine

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page 9…./ lubrication is non-flammable, combustible and not hazardous. There were no record of major accident involving machinery/ equipment in previous years up to present.

AC units hydrocarbon refrigerant

All air-conditioned units are using hydrocarbon refrigera nt instead of CFC’s, HFC’s etc

Hydrocarbon refrigerant is made from naturally occurring gases, no chemicals and it cause no damage to the ozone layer and to the environment.

They are energy efficient, have no chemical or acid reaction and are highly economical.

Previously, our AC units consumed 5 kilos but now using hydrocarbon refrigerant

Aside from being energy smart, it is environment-friendly in terms of emission.

Health and Safety Committee

Aside from clinic facilities provided by the company, it is mandatory to have Health and

Safety Committee composes of medical staff, one from managerial position and committee members. This committee contributes in developing a healthy workplace, reducing pollutants harmful to human and environmental health. Activities of the committee are annually reported to Department of Labor and Employment. ( DOLE ).

Every first quarter of the month, PEZA is conducting their annual inspection of the company. It includes inspection of equipment and machinery, canteen, sanitary facilities, fire extinguishers, fire drill records, building insurance, clinic facilities etc. Certificate of

Inspection is issued separately for mechanical, electrical, sanitary. These certificates are posted at a designated area visible to all. We recommend ill employees to a medical specialist are there is a need for assistance. We also have our Safety Officer and

Pollution Officer as part of the members of the Health and Safety Committee.

Energy Walk-through

We have subjected our company to an Energy Smart Audit which aims at identifying the energy losses of the company in its present system. It also points out opportunities for energy efficiency. During the audit, it verifies the compliance with the energy management system. The company wish to get a specific recommendations for corrective and preventive actions to come up with an energy savings device as well as make use of machine and equipments or tools that is environment-friendly.

Preventive Maintenance

Checking of building facilities in preparation to any calamities ( eg. Typhoon, etc )

Discussion was made to get ready with the natural calamities that may occur at any time in the country. We are in the process of having an earthquake drill middle of this year.

Annual Work Environment Measurement

Last December 2010, company has requested for the Occupational Safety and Health

Center( OSHC ) to conduct Work Environment Measurement ( WEM ). Technical services done were concentrated in the work floor Industrial Hygiene Services -dust, noise, illumination and general ventilation. The objective of this activity is to see to it that the work area is accident free . It also identifies strategic risk in the company. It ensures that workplace is free from harm against dust, noise and illumination. This initiative forms part of company’s health and safety program.

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Compliance to material testing on Oeko- Tex Standard 100

Dealing with European buyers, entails a lot of compliance to their requirements. One of this is the OekoTex Standard 100, world’s eco label for textiles. Materials and accessories we are using in our shirts have been tested to the defined criteria of Oeko-

Tex 100. It provides a guarantee that product poses no perceivable health risk to end- consumers or any human beings. We make sure that all our suppliers are delivering to us materials that pass Oeko-Tex standards. The idea of Oeko-Tex Standard means creating a quality product that is universally valid as this quarantee the consumers or buyers that the products or materials used are ecologically harmless. Using materials and accessories like fabrics, threads, buttons, interlinings and others that are tested and considered as environment -friendly proved the company’s initiative to address environment- related issues. This is also our chance to raise awareness to other companies within the supply chain to meet the ecological standards required to compete on a global basis. Increased in customers demand by 80% in 2008- 2010, we intend to continue giving satisfaction to our customers by providing them not only quality but user-friendly and environment- friendly products.

Anti- corruption Relevant GRI Indicators

Business should work against corruption in all its forms, including

extortion and bribery.

Corporate Values/ Beliefs

In the company’s Group Beliefs posted in our factory, one of its components is

“INTEGRITY “ being honest in words and action. Awareness of Corporate Values which includes honesty among others, concretize the company’s aim at promoting anti- corruption campaign.

Voluntary Compliance

We have no detailed statement of the Anti-corruption policy, but in the company orientation, it is clearly disseminated that no employee is allowed to deal with any corrupt practices especially in the areas of procurement, payroll, contracting, forwarding etc. Anti-corruption effort is implemented in all levels of organization. During orientation of the new employees, they are informed about prevention of corrupt practices in all sort. External auditors conduct audit on various reports and different documentations that would involve monetary transactions. Department Managers and staffs are strictly urged by the management to resort only on legal papers and documents. Bribery and/or extortions has not been a practice of C S Garment, Inc. , we operate only in legal manner. There are some challenges in the process wherein it is difficult to distinguish lavish gift practices to bribes especially when there is an occasion. Company considered these gifts ( in kind but not cash ) to be raffled out to the employees and not to be given directly to the person in-charge.

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Equal pay for equal work

Equal fair pay for a job well done, there will not be corruption in salary pays. Seniority pay and productivity-based bonuses are provided. Regular review of payroll, production record for incentive is conducted by the HR Manager to verify accuracy. Payroll padding will be avoided also.

Corporate Social Responsibility

The best program on anti-corruption is the integration of corporate social responsibility

( CSR ) programs and practices. Top management has assigned a Senior Executive to explicitly be in-charge with developing and coordinating all CSR related activities and apply sound measures to effectively implement the program. The employees will feel a sense of ownership and knowing that the company takes care of their family would remind them to love their work and stay loyal to the company where they work. As for the community, CSR programs like skills training will help in the prevention of social cancer because the youth will engage themselves to work and study and not to vices.

Their potentials will be developed and they have better chance for employment locally and abroad and become self-employed. Corruption usually happens not only inside the company but outside of it. People especially those who came from low-income group and the unemployed are susceptible to corrupt practices thus, teaching them how to fish will uplift the quality of their lives and divert their attention to a more productive and dignified job.

Comprehensive Benefit Package

The company believe that giving employees better benefits will help them avoid corrupt practices. Productivity- based incentives and bonuses will enhance more the employees efficiency level. It is chain reaction, in return, company offers more attractive benefits and compensation. High company efficiency of 90% is an indicator that employees enjoyed their productivity incentives also.

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