May 29, 2019 – Charoen Pokphand Foods PCL (CP Foods) and its subsidiary Bangkok Produce Merchandising PCL (BKP) have teamed up with Thailand’s Department of Labour Protection and Welfare to improve labour practice of local suppliers, ensuring traceability and sustainability of both companies’ supply chain.

BKP, which provided the raw materials for CP Foods, signed a Memorandum of Understanding (MoU) with the Department of Labour Protection and Welfare to jointly develop stakeholders in its supply chain to apply sustainable practices for workers under “The Joint Development Project for Suppliers to Achieve Thai Labour Standard”.

The public-private project aims at improving well-being of workers as well as ensuring a fair treatment toward all labours in Thailand.

Mr.Wiwat Tanhong, Director General of the Department, said the department will arrange training and workshop to CP Foods’ suppliers. The project will focus on providing concerned knowledge on labour management including recruitment and selection, working hours, welfare and benefits, fair practices as well as child labour, forced labour and human-trafficking protection. In addition, it will also encourage those companies to realize more on safety environment in line with Thai Labour Standard (TLS).

“The government has a clear goal to develop efficiency and effectiveness of Thai labour to meet with Thai laws and international labour standards. We aim to upgrade their living standards and strengthen suppliers’ businesses through sustainable operation focusing on labour management system under TLS. This will create sustainable benefits to Thailand in term of economy, society and export competitiveness in global arena,” noted Mr. Wiwat.

Mr. Paisarn Kruawongvanich, Executive Vice President of BKP, said the company will work closely with its suppliers to jointly develop and engage more on TLS to strengthen competitiveness of Thai business in the global stage. Initially, the 3-year project (2019-2021) will cover the company’s 300 suppliers in 50 provinces nationwide involving 6,000 workers.

BKP focuses on medium suppliers and raw material traders in its supply chain including maize, tapioca chip, palm oil, rice products and fish meal, to operate business legally and responsibility in line with labour rights protection and international regulations.     

“BKP has prioritized on labour management under CP Foods’ Sustainable Sourcing Policy and Supplier Guiding Principle to create competitiveness and win-win partnership with our suppliers, particularly to upgrade living standards of labour,” said Mr.Pisarn.

BKP expects those participated suppliers have to achieve self-declaration under TLS regulations and one third of them have to be certified by TLS 0ffice.

Mr.Paisarn stressed that the project also aims for participation and exchanging views among suppliers, farmers, community, non-profit organizations and government agencies. They will learn more on responsible sourcing and traceability of key raw materials for sustainable production in line with Sustainable Development Goals and the United Nations Global Compact.