Human Resource Employment

Staff Situation

In 2019, Handa Enterprise (Myanmar) Co.,Ltd. has a total number of 3,922 employees, all of whom are full-time workers.Among them, 599 are male employees, accounting for 15.3% of the total number of employees; 3322 are female employees, accounting for 84.7%.Most of the company's employees come from Myanmar, which accounts for about 98.8%, and Chinese employees account for 1.2%. The company does not discriminate and show unequal treatment in the job arrangement. Also the Myanmar employees are given more care and respect based on their traditions and living habits.

There are no underage workers and child laborers in our company.

Gender ratio of employees

Proportion of employees from China and Myanmar

Employees’ age distribution

Education level of employees

Employment Policy

Employment Principle

Handa Enterprise (Myanmar) Co.,Ltd.always follows the principle of equal employment and reasonable payment. In the process of recruiting and using employees, we insist on equality among employees of different gender, race, color, nationality, age, and religion. Treating employees differently or discriminating against employees, harassing employees, and recruitment of child laborers are strictly prohibited. Till now, the company has not received complaints that employees are discriminated in terms of salary, benefits, training, promotion, dismissal, or renewal of labor contracts because of their nationality, gender, religious beliefs, etc. Additionally, there’s no complaints from employees regarding harassment (including sexual harassment), corporal punishment, maltreatment, improper disciplinary measures, etc.

Labor Contract 

The company strictly abides by and implements the labor laws and regulations of Myanmar, and on this basis establishes a labor management system that is consistent with the laws and regulations of Myanmar. After the employees have been recruited into the company through legal procedures, on the basis of equality and willingness, the company signs labor contracts with them. The contract signing rate is always 100%. There were no labor disputes and strikes because of labor contracts during the year.

Working Time

In Handa Enterprise（Myanmar）Co.,Ltd., employees work 6 days a week, 8 hours a day, and work hours are in compliance with national and local regulations. When an employee asks for days off, the company will not refuse for any reason. All employees enjoy national holidays and annual holidays with payment based on the Myanmar law.

If it’s necessary, the company can properly arrange overtime work on the premise of voluntary and protecting the employees' health. However, it must be guaranteed that at least one day Off per week, the maximum daily overtime is no more than2 hours, and the working hours per week do not exceed 60 hours. The monthly overtime work time should not exceed 60 hours. If the time is exceeded must the company ask for the employee’s consent in advance, and the company needs to ensure that the employee is physically and mentally healthy. Meanwhile, the company must apply to the labor bureau for comprehensive timing, and the cumulative annual overtime shall not exceed 432 hours. All overtime hours are in line with Myanmar Labor Law and local government requirements.

Up to now, the company has not forced employees to work overtime, nor has it received complaints, reports or penalties concerning labor relations.

Zero-tolerance on child labor

Handa Enterprise（Myanmar）Co.,Ltd.strictly prohibits recruitment of child labors.

The Administration Department is responsible for the confirmation of the actual age of employee recruitment and the personnel verification afterwards. Other departments would assist in the implementation. The company prohibits the recruitment of child laborers under the age of 16 when recruiting, and strictly verify the age of employees who come to apply. All those who are under the age of 16 must not be hired.

The Administration Department strictly enforces the “Management Regulations for Recruitment and Employment” during recruitment. A variety of methods are used to verify the employee’s birth date, and to avoid accidentally recruiting child laborers from the source. In addition, the Administration Department needs to carry out random checks on a regular basis to verify identity cards, and conduct multiple inspections on the ages of employees. Finally, according to the company’s rules, if a child laborer is found within the company, it should be independently documented and he/she must be made to stop working immediately. At the same time, the employee must be sent to the hospital for a health check,any department must not dismiss the child laborer. If the Employed child’s family has Financial, the company will provide employment training opportunities for other adult family members as far as possible to avoid child labor from happening again.

Protection for Female Workers

During pregnancy, our company will not arrange for female workers to engage in manual labor with high labor intensity and contraindication during pregnancy. We will not extend working hours beyond normal working days. For those who are not qualified for the original work, we will reduce the workload or arrange other work according to the certificate of the medical department.Female workers who have been pregnant for more than seven months (including seven months) will not be scheduled to engage in night work and overtime work.They would be scheduled to have a certain rest time during their working hours.Prenatal examination during working hours would be counted as working hours for pregnant female workers. Female workers with infants under one year old are entitled to two breast-feeding (including artificial feeding) times per shift of working time, each of which lasts 30 minutes.Two breast-feeding times per shift for female workers may be used in combination.Breast-feeding time and timein road of the breast-feeding inside company going there and back, would be counted as working hours. When the maternity leave expires and resumes work, one to two weeks are allowed to gradually resume the workload of the original quota.

Salary & Treatment

Based on the principles of legality, science, motivation and fairness, the company has established a standardized compensation management system and performance evaluation standards. A reasonable salary would be paid on the 5th of each month on time and in full, and there were no wage arrears.

The average monthly salary of employees in 2019 is around 310,000 Kyats. Myanmar’s minimum wage is 140,000 Kyats per month, and the industry’s average wage is 270,000 Kyats. Hence the average monthly income of our employees is much higher than the local minimum wage and industry’s average wage.

The company rewards outstanding employees and excellent teams each month, and the maximum bonus is 50,000 Kyats. For employees who have worked over a year there is a reward, and they may enjoy paid annual leave of 10 days. At the same time, the company also sets up award measures such as over-production awards to increase the income of employees. The total salary of employees has continued to grow since the establishments of the company.

Employee Welfare

Handa Enterprise（Myanmar）Co.,Ltd.always pays attention to employee welfare, and provides direct and indirect assistance. This helps to strengthen employees’ sense of belongings and improveemployee satisfaction and company recognition.

Insurance

The company pays social insurance for all employees.

Providing holiday gifts and organizing various activities

During the reporting period, the company distributed holiday gifts to all employees in Myanmar festivals such as Songkran, Lantern Festival and Full Moon Festival. For Myanmar Songkran Festival (Myanmar New Year) each year in April the company holds a gala for employees. In the Chinese New Year each year, the company also organizes various activities for employees. Meanwhile, various cultural and sports activities and visits are carried out every year to enrich the lives of employees.

Setting up a Buddhist temple

Myanmar is a country where Buddhism prevails. Temples and pagodas can be seen everywhere in the country,and it has become a habit for them to worship. We fully understand their customs and habits. The company set up a Buddhist temple in the factory area to facilitate employees to worship the Buddha.

Providing Free Dormitories

Handa Enterprise (Myanmar) Co.,Ltd.provides free dormitories for employees. Each dormitory is equipped with an air conditioner, a television, awater purification equipment, hot and cold water equipment and a clean bathroom, etc. to make staffslive in comfortable condition.

Labor Communication

Handa Enterprise (Myanmar) Co.,Ltd.values employees’ participation in daily production. To make sure the company management team can communicate with employees efficiently, the company established a complete labour communication mechanism, so the management team could understand the workers, help with their work and life, and prevent unnecessary conflicts.

Workers'Coordination Committee

With the domestic development in Myanmar, Workers’ Coordination Committee has become an important part of company’s management. In order to promote good relationship between company and employees, make negotiation and coordination between company and employees, Handa Enterprise（Myanmar）Co.,Ltd.indicated procedures and methods for collecting and resolving labor disputes.

There would be an election for the Workers’ Coordination Committee each year. In order to ensure the comprehensiveness of the workers' representatives, and to make sure they can truly represent the voice of all the workers, the candidates for the workers' representatives were elected from different departments.Workers' representatives shall be voted by the employees instead of managers.The representatives will be elected based on highest votes. All employees inHanda Enterprise（Myanmar）Co.,Ltd.have the right to vote and be voted. All workers' representatives must serve their employees voluntarily.

In 2019, Handa Enterprise（Myanmar）Co.,Ltd.elected 12 workers' representatives.

Workers' representativescan directly submit any opinion and suggestion of employees in such aspects as environmental hygiene, welfare benefits, working conditions, etc. to the company's senior managers through written form, suggestion boxes, face-to-face communication, etc.Senior managers should respond effectively to every opinion or suggestion and hold a monthly communication meeting to properly handle letters and visits from employees.If the company's senior managers are unable to hold communication meetings due to special circumstances, they may entrust their agents to chair the meetings.The relevant rules and regulations formed after the communication meeting should be explained and propagated to all employees by workers' representatives in time.

Internal Communication Mechanism

The company establishes a variety of internal communication mechanisms to proactively and timely understand and deal with employees’ opinions and appeals.

The company’s management personnel regularly organize employee forums with Myanmar employees and workers’ representatives and listen to employees’ opinions and suggestions. The company would conduct research on suggestions and adjust the management system after adoption, and promptly inspect and follow the improvement situation, as well as inform employees and the union of the progress.

The company set up multiple employee suggestion mailboxes at workplaces, canteens, etc. The suggestion mailboxes are opened every week. Both Chinese and Myanmar managers would gather to discuss about the employees’ opinions on the meeting, to coordinate and carry out solutions.

Employee Development

The majority of Handa Enterprise（Myanmar）GarmentCo.,Ltd.islocal Myanmar employees, most of them have low levels of education. In order to improve the capabilities of Myanmar employees in all aspects, andtrain and explore employees with potential, we provide a platform for employees’ growth and development. The company arranges professional person to provide skills training for new employees so that they can adapt to their work and working environment quickly.

In the aspect of training, the company has a long-term perspective and pays attention to the training and promotion of employees' abilities in all aspects. We help employees to carry out career development planning and promote them to form active awareness of self-improvement and development. That is how we build a mutually beneficial win-win situation between the company and the employees.

Handa Enterprise (Myanmar) Co.,Ltd.had been offering training to improve workers’ professional skills, and strengthen workers’ capabilities. Based on assessment, employees who do well will be selected to suitable management position. Such action created a fair and just competition in the company. At the same time, giving employee’s a good development guidance. By the end of 2019,Handa Enterprise (Myanmar) Co.,Ltd. has trained 225 young Myanmar managers, some of them have become the professional trainers in the company.

A part of Myanmar managers:

In 2019, the company conducted more than 100 training courses and trained all employees. The training courses included local laws and regulations, company systems, professional knowledge, safety production and so on.

Appendix: Parts of list of 2019 Training Courses

Since 2018 we invited professional Chinese teachers and openChinese languagecourse in order to reduce language barriers between China and Myanmar employees.The language course is opened twice a week, written and oral tests are conducted every 3 months. Once the employees passed the exams, the company will offer certificate and prizes.

In order to motivate the development of the employees, the company persisted in carrying out excellent selection activities, encouraging and nurturing large numbers of outstanding employees and progressive teams to strive for progress.

In April 2019, the company organized a group of outstanding Myanmar employees to visit the headquarter in Wuxi, China. The group visited the knitting, dyeing and garment factory in Wuxi,at the same time, communicated with the employees at the headquarter to learn management experience.

Occupational Health, Safety and Hygiene Management

Occupational Health, Safety and Hygiene Policy

Strengthening the labor protection in oversea investment and effectively maintaining the safety and health of employees are an important part of management of Handa Enterprise（Myanmar）Co.,Ltd..

Handa Enterprise（Myanmar）Co.,Ltd.follows the basic principle of "safety first, prevention first" , and rules of safety production. At the same time, establishing a complete production safety management, Improving requirements and rules; hence strengthening production safety, management, training and ensuring emergency rescue.

Till now no major production accidents have ever happened in the company.

Environmental Health Committee

The company established the Environmental Health Committee and appointed the director of the Security Department as liaison officer for the committee, who is responsible for assisting management representatives in processing related matters related to environmental health and safety, and making sure related regulations are implemented.

The Environmental Health Committee would hold a meeting every three months to summarize and report all major hazards discovered during the inspection. Safety checklists, hazard notifications would be issued to solve the problems.

The committee would also invite workers’representatives to attend the meeting which is held every three months. The issues raised by employees' representatives on environmental health and safety would be noted and discussed with senior management personnel. The results would be posted on the bulletin board.

Fire Safety Management

Handa Enterprise（Myanmar）Co.,Ltd. follows the basic principle of "safety first, prevention first" , and strengthens and implements the management of fire safety. We had been training and raising safety awareness of employees, to make sure the fire safety management can be fully implemented.

In order to make sure safety during fire alarm and accidents, Handa Enterprise(Myanmar) Co.,Ltd. developed emergency evacuation procedures and firefighting procedures, established emergency firefighting committee, formed emergency responding teams, evacuation teams and medical care teams.

In order to further strengthening production safety, the company has upgraded fire protection facilities such as increasing amount of spraying equipment and fire hydrants. The company has also installed automatic pumps and automatic alarm system.

On October 2019, the Yangon Insheng fire departmentdid tests on company’s fire alarm system. The auditordid detailed inspection on the fire equipment, investigated the water pipelines, did spraying test, smoke test, alarm bell test, etc.The company passed the inspection.

Employee Health Management

The company adheres to the people-oriented  management philosophy and put the employees’ health in the first place. We would regularly conduct health care knowledge training and organize employees in special positions to do health checkups. In order to respond to the sudden physical discomfort of employees, medical kits are placed in every workshop and the company has set up an infirmary equipped with qualified doctors and nurses for employees to turn to.

Working environment maintenance

The company takes the following actions to maintain a healthy, safe working environment for employees’ health:

·The Environmental Health Committee is responsible for all health, safety, environment related issues.

·Maintain clean and tidy in workplaces like offices/workshops at all time. 

·Arrangement of equipment such as machines and worktables should take safey into consideration.

·Air conditioners, fans, exhaust fans, and other equipment should be installed at all locations to provide employees with suitable temperature and ventilation. Related departments should note daily temperature and humidity according to thermometers & hygrometers.

·Exhaust fan or exhaust gas extractor should be installed in workshops to exhaust air pollutants (such as dust, water vapor, exhaust fumes, etc.) in case they spread.

·Try to use non-toxic and harmless industrial technology and raw materials during the designing process.

·Wear protective equipment as required for all places where protective equipment is marked and needed.

·Changes in process, working conditions, materials, etc. may lead to new environmental factors. If such situation takes place, the Environmental Health Committee would evaluate and identify potential hazards and arrange proper safety controls.

Food & water safety

In order to solve employees' drinking water and domestic water usage problem, the company introduced and installed automatic water purification equipment. The quality of purified water is higher than the drinking water standard promulgated by the Myanmar government. Such equipment is installed to the canteen, dormitory and each workshop to make sure the employees have access to safe and clean drinking water. It has contributed a lot to improving the quality of drinking water and domestic water for all employees.

In order to ensure the healthy diet of employees, the company prepared water cups for each employee, and put names on the cups. We actively engaged in changing employees'bad habits of using public water cups.At the same time,Handa Enterprise（Myanmar）Co.,Ltd.organizes employees to participate in health and safety knowledge training, so that employees can develop healthy habits and ensure their own health and safety.

The company offers a clean canteen equipped with trained and qualified workers, who have obtained health certificates and have been trained and qualified with hygiene knowledge. All canteen workers would do a health check every year to prevent infectious diseases.

Employee Care

Handa Enterprise（Myanmar）Co., Ltd. organizes various activities on a regular basis and respects employees’ religious belief to improve employees’ working atmosphere. In 2019 the company organized various cultural and sports activities, and excursions, which showed care and love for all our employees.

Colorful staff sports meeting

On Jan 4th (Myanmar Independence Day), the company held the 3rd Sports competition, to raise employees’ spirit and group cooperation skills.

The competitions include running, tug-of-war, balloon bouncing and etc. The top three winners were awarded by the company leaders.

Annual teacher festival activities

In September, the company held a grand annual teacher festival. Company employees send blessings to their supervisors and leaders, at the same time, receive encouragement and blessings from their supervisors and leaders.

Grand Thingyan Festival Gala

Before Myanmar's Thingyan Festival, Handa Enterprise (Myanmar) Co., Ltd. hosted a grand festival gala for all employees. The company also gave awards and prices to the outstanding employees and groups. During employees’ performance, the company also prepared a lucky draw session.

Attending Employee Weddings and SendingCongratulations and Gifts

When the company employees hold weddings and other activities, the company leaders sent them congratulations and gifts.