Charcoal production soars, meets international standards

DAVAO, Philippines (ILO News)- Cooperation between the International Labour Organization (ILO) and the Government of Japan helped a company that makes charcoal from natural coconut shells improve workplace relations and meet international standards.

BF Industries, Inc., a Davao-based Filipino-owned company manufactures and exports granulated charcoal, cocoshell charcoal briquettes, and activated carbon its products to customers based in Japan, South Korea, China, Australia and in Europe.

With a business that has existed for over 50 years starting in 1971, BF Industries welcomed the change that it can achieve together with its 327 workers using ILO’s Sustaining Competitive and Responsible Enterprises (SCORE) programme. Welcoming the SCORE process also proved valuable in strengthening workplace relations considering that BF Industries Inc. is a unionised establishment.

Florife Gallarde, a SCORE trainer approached the company to gauge their interest in going through the SCORE training process which starts with a personalized business assessment before proceeding to modular classroom training and thereafter, on-site visits of the trainer to the company to support implementation of workplace improvements toward better quality and productivity, stronger labour-management cooperation, and occupational safety and health. For officials at the company, they saw this series of activities as necessary for the company to keep abreast with the needs of the market.

Upon assessment, BF industries Inc. had adequate measures on occupational safety and health (OSH) based on documented programmes, the frequency of safety and health committee meetings and production meetings where targets, client’s feedback and market specifications were discussed.

However, the assessment noted that the company officials wanted to find solutions for high production cost and to address the safety and health risks due to dust and heat exposure of workers given the charcoal processing works. As an export-oriented business, these risks can adversely impact the company’s ISO 9001:2015, Halal, Kosher and National Sanitation Foundation certifications.

At the series of trainings held on separate sessions in January, October and November 2023, BF Industries Inc. officers which included those handling human resources, safety and security, quality assurance and control, production, engineering, operations, purchasing, and pollution control learned about how strengthening cooperation with workers benefits both the enterprise owners and its workers.

In addition to the merits of workplace cooperation, the trainees learned about quality improvement, resource efficiency, workforce management, occupational safety and health at work, lean manufacturing, gender equality, and responsible business,

With these learnings, the company’s Enterprise Improvement Team (EIT) initiated measures to achieve cost savings by monitoring and controlling the packaging wastes including residual waste generation and intensifying the implementation of OSH training programmes.

The company changed its OSH signages to conform to DOLE standards and establish well-defined areas for stocks storage, pedestrian and forklift operation to ensure safety of workers. Initial reports collected in the first quarter of 2024 indicate that these measures observed higher employee satisfaction, cooperation, productivity, and retention, as workers felt valued and treated fairly, and adopted eco-friendly practices that lead to reduced carbon footprints and cost savings.

“The SCORE programme led us to become a more resilient, competitive and responsible business. We focused on innovation, productivity, cost savings and efficient management practices, and worked together to adhere to the principles of decent work," shares Bea Hernandez, Senior HR Manager during the presentation of SCORE results last March 2024.

Delivery of SCORE training and coaching for selected small manufacturing enterprises in the Philippines was supported through the ILO Bringing Back Jobs Safely (BBJS) project funded by the Government of Japan. Through the BBJS project, Training of Trainers (ToTs) were organized for 29 trainers who are now in different stages of completing the process toward ILO global certification.