Ref ICMM Toolkit No. 5

Trainers: Brendan Sanga & Allan Kikitam

Date:

Venue:

CR TOOLKIT WORKSHOP

GRIEVANCE MECHANISM

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Presentation Outline

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1. Introduction– Definition– Background– Objective

2. Overview of C&G Mechanism – Need for Grievance Mechanism– Understanding Grievance Mechanism– Initiating a Grievance Mechanism

3. Developing & Implementing Effective C&G Mechanism– Define Scope & Determine Goals– Design– Implement and Operate– Monitor, Report and Learn

4. Group Exercise

5. Summary/ Conclusion

Introduction

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Definition

• What is Grievance Mechanism?

– Grievance; is an issue, concern, complain or claim (perceived or actual) that an individual or community groups wants a mining company to address and resolve. (Compliance Advisor Obudsman)

– Mechanism; refer to a process, procedure, system, method of doing things. (Oxford Dictionary)

– Grievance Mechanism; a process by which a community member or other stakeholders can register their concern about real or perceived actions by mining project with the objective of resolving the conflict/problem before they escalates.

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Background

• There many different kinds of grievance mechanism for example, Employee - Employer, Students - Teachers etc. In this presentation our focus will be on Company-Community Grievances Mechanisms in the Mining Sector.

• Under Community –Company Grievances there are three (3) different approach of resolving grievances;

Using existing CR structure to deal with community complains E.g OTML

Community Feedback Mechanism eg. Indonesia Kaltima Prima Coal’s Operation

Though stakeholder engagement using computerize system eg. Anglo-America

Introduction continue

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Introduction continue

Objective

• This discussion will be focused on Company-Community Grievances Mechanisms in the Mining Sector, specifically on overview of GM & Phases of Designing and implementing Effective Grievances Mechanisms.

• There objectives of this presentation are to;

– Get CR staffs to understand the concept of Company-Community Grievances Mechanism particularly on the design & implementing effective GM.

– Is to get CR Officers to understand formalise system of handling Complain/ Grievances.

– Prepare CR Staffs to implement Complain & Grievances Mechanism once it is finalized and rolled out within the OTML CR Department.

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PART ONE: Overview of Grievance Mechanism

1. Need for Grievance Mechanism• Traditional ways most companies handle grievances

a) Blind Trust: Rely on Reputation to avoid dispute- Depending on the notion that company has established sufficient trust

with the community

b) Ad hoc: Hope for the Best- Use of own idiosyncratic version of grievance resolution on a case by

case basis as specific disputes arises. Each case is handled as an individual event. This approach is pragmatic, flexible and inconsistent.

c) Investigate, decide and announce

- An internal, multi – step procedure with specific time frames.

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Cont

A Better Approach: Grievance Mechanism• Local people need a trusted way to voice and resolve concerns linked to a

project’s operations

• A locally based grievance resolution mechanism provides a promising avenue by offering a reliable structure and set of approaches where local people and the company can find effective solutions together

• A well-functioning grievance mechanism is a better approach

• A well-functioning grievance mechanism can also provide valuable feedback to companies.

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cont

In addition to serving as a platform to resolve grievances, an effective grievance mechanism can help achieve the following goals:- Open channels for effective communication- Demonstrate that a company is concerned about community members

and their well-being- Mitigate or prevent adverse impacts on communities caused by

company operations- Improve trust and respect- Provide structures for raising, addressing, and resolving issues that

reduce imbalances in power- Promote productive relationships- Build community acceptance of a company’s “social license” to operate

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Understanding the Grievance Mechanism

Guiding Principles.• Clearly, any grievance mechanism incorporating mediation or other

interest-based processes must be grounded in a framework of ethics and principles that should not be violated.

- Legitimate- Accessible.- Predictable. - Equitable. - Rights-compatible. - Transparent.

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Initiating a Grievance Mechanism

1. Identify and Engage Key Actors

To develop needed support:• Identify a promoter within the company.

• Identify promoters within the community.

• Cultivate leadership within the company and community.

2. Establish a Design Team• The design team serves as a strategy team, sounding board, designer,

and promoter. The team normally provides technical and political capability to move the process forward, enhances acceptance during the initial introduction, and ensures that implementation is effective.

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Cont.

3. Understand the Current Environment

• Stakeholder feedback is part of any design team’s education. To address doubts, gather valuable input, and build support, those leading the initiative should develop a plan for gathering input from local company and community people at the front end of the planning process

• An effective outreach process engages all stakeholders to: help shape what the grievance resolution mechanism looks like; increase transparency by presenting the company’s preliminary thinking about the grievance resolution mechanism (why the company wants to put one in place and ways in which it will benefit local people); and build understanding and support for the initiative among diverse stakeholders.

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PART TWO:Developing and Implementing Effective Grievance Mechanism

Define Scope of Grievances

• Ascertain type of grievances that are likely to arise or review grievances already in the case of existing operating projects.

• Grievances should be both factual and perceptions• Prioritise type of complains that Grievances Mechanism will target.

Define Purpose & Goals• We can define purpose & goals of Grievances Mechanism by asking

ourselves this questions; – Why is a grievance mechanism being established?– What do we hope to achieve in both long and short team?– Will the GM be oriented primarily around concerns of the community or joint

concerns around company and community?– Is the GM oriented towards identifying root causes of conflict and addressing it or

focusing on resolution of individual?– Is the GM oriented towards company investigations & internal redress or towards

a more comprehensive sets of options for resolutions and provision of justices

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Design

Prepare a Preliminary Design

• Develop a blue print or plan for what the grievance mechanism may look like. In simple GM may broken down into following primary components;

– Receive and register a complaint– Screen and asses the complaint– Formulate a responds– Select a resolution to approach– Implement the approach– Settle the issue– Track and evaluate the results– Learn from the experience and communicate it to all parties involved.

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Design Continue (Proposed OTML Model)

RECEIVE COMPLAIN (24 HR)

ACKNOWLEDGE OF COMPLAINS (5 DAYS)

PRELIMINARY ASSESSMENT OF COMPLAINTS (12 HRS)

DELEGATING COMPLAINS (12 HRS)

INVESTIGATING COMPLAINS (30 DAYS)

APPEAL – INTERNAL REVIEW(1- 6 MONTHS)

APPEAL – EXTERNAL MEDIATION(6-12 MONTHS)

Complain entered into databaseTracking code generated

Acknowledgement letterto complainant

DecisionResolve/ agree or

investigate

Letter providing statusOutline action & timeframe

Decision-Resolve/Agree or

Appeal

Sign off

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Receive and register grievances

Screen and assess

Reject Complain Act to resolve locally? Refer as appropriate

 Company proposes solution

Decide together Defer to third party to

decide

Utilize customary approach

Implement approach

Track and document

Feedback and learn

Decide, communicate decision

Choose local approach

Design Continue

A grievance mechanism with multiple local approaches with resolving complains.

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Choose ways to Receive, Register, Screen, Assess and Respond to Grievances

• Receiving and Registering Complain• Screen for Eligibility• Assess the Grievances• Formulate a Responds

Select Grievances Resolution Approach

• The company propose a solution to the problem• The community and company decide together• The company and community defer to a third party to decide• The company and community utilize traditional or customary practices

Design a Means to Track and Monitor Grievances

• Document severity (high, medium, low) of complain & company responds• Dedicated staff assigned to update the database routinely

Design Continue

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Develop the Grievance Mechanism

• Define the Governance Structure– Authority delegate to specific officer who have general oversight of the grievances

mechanism as a whole, serve as gatekeepers for acceptances of complains and make decisions regarding the redress of issues

– Explicit steps for resolving grievances.

• Determine Institutional “Home” for Grievance Mechanism – Grievance mechanism must housed within a Team and be located in the nerve centre of

the company.

• Incorporate the Community– To draw up community’s perspective, the system may tap community leaders, elders,

chiefs. Their functions may include accepting and forwarding community complains to appropriate CR officers.

• Review & Redefine the Design– How effective is the GM in meeting our goals & objective?– Is GM approach sufficient or necessary ?

Design Continue

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Implement & Operate Grievance Mechanism

Introduce the Grievance Mechanism

• The way GM is introduce to company employees and the public can have significant implications for its effectiveness.

Communicate to build awareness

• Get words out to Impacted Communities• Get words to partners and stakeholders

Train and Support Participants

• Personal who will administer the system must receive skill training in conducting receipt, registration, referral process, quality control, monitoring, record keeping and GM ethics

• Grievance Coordinators must receive training in conflict resolutions and grievance management.

• Managers & Supervisors need problem solving skills• User of GM System must know how use the system

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Monitor, Report and Learn

Get the Right People and Create Suitable Forums• Create a grievance advisory Committee – an oversight group with authority

composed of company & independent expert who will monitor performance and provide strategic advice about the GM to management.

Establish clear standards and criteria for evaluation• Identify which aspect of GM to evaluate; the whole mechanism;

performance of staffs assign to implement GM; time required to process GM; Database software used in GM; process used in GM

Create a plan to implement changes to the mechanism• Plan to detail what is to be done, when, where, how and by whom

Report back to the community• In the spirit of transparency & accountability companies are encourage to

provide results of GM back to community including nature of complains; case outcomes and resolutions.

Learn and modify• Key insights emerging that require changes to company operations• Possible systemic changes and adjustment to GM to ensure ongoing

complains are arrested.

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Group Exercise

In three Groups;– Group A; There is a pipe rapture along the highway at km 43, gardens destroyed

& environment polluted. Communities have stopped OTML from reconnecting the pipes/blocked off highway leading to Tabubil and Bige. They are demanding K50 Million from OTML. On a butcher papers outline the practical steps your team will take to resolve the issue using the Grievance Mechanism. (Actual Event)

– Group B; A conflict between David Kaiyeng and John Wanim had spill over to other Mine Villages. There’s a rumor that John Wanim’s group will block Bultem Road Corridor leading up to Mine and demand mine/mill operation to shut down until their difference is settled. The issue will be costly to OTML and it is in the best interest of OTML that CR assist resolved the issue. On a butcher papers outline practical steps your team will take to resolve the issue using the Grievance Mechanism. (Perception)

– Group C: Create your own scenario or used any current Issues/ Complains CR is faced with. Eg. Kobom dieback, Km 59 pump station issue etc. On a butcher papers outline practical steps your team will take to resolve the issue using the Grievance Mechanism. (Perception/ Actual Event)

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Summary - GM Flow Chart

Step 1

• Engage community member and receive grievance• Record Grievances and enter it into database

Step 2

• Preliminary assessment – categorize complains • Assign the grievances to relevant officers

Step 3

• Respond to complaint – write or communicate verbally• Explain the process and timeline of the GM procedure

Step 4

• Investigate the Grievances Using Appropriate Team• Devise a resolution process and record results

Step 5

• Follow up on the resolution process to ensure aggrieved satisfied• Seek sign off from the complainant file all complain in database

Step 6

• If complainant not satisfied, discuss further options• If matter still unsolved, refer matter to third party mediation or ext. review

Step 7

• Regularly monitor and evaluate the grievances received, solved & outstanding• Adjust procedure if and when necessary.

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Conclusion

• Grievance Mechanism are increasingly important for new developing projects & existing project where ongoing risks or adverse impacts are anticipated. OTML is no exception to this statement.

• GM is now an internationally required system for all mining projects to comply with. Not only that, but it has been emphasize by United Nations for empowering human rights.

• PNG Government after reviewing Mining Policy, they have now decided to encourage all mining companies to come with GM as a requirement before going into mining activities.

• It is therefore vital for OTML CR to developed its Grievance Mechanism process, procedures and system to deal with those challenges and live up to standards set by ICMM & IFC & future PNG Government policies.

• Trained specialize & dedicated staffs including a user friendly database software are essential for an effective GM at OTML

• Having a ongoing monitoring & evaluation program of GM will assist redefine GM to suit OTML CR operations.

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End of Presentation

QUESTIONS

&DISCUSSION