Project BSIC Project Monitoring Final Report For BSIC Total H1 (January-June) - 2010 Vietnam – Cambodia – Laos

Project BSIC Project Monitoring

Final Report

For BSICTotal H1 (January-June) - 2010

Vietnam – Cambodia – Laoswww.indochinaresearch.com

Page 2BSIC PROJECT MONITORINGHI Final Report

Background & Objectives

The Beer Selling Industry of Cambodia (BSIC) is comprised of prominent alcoholic beverage members of Cambodia Brewery Limited, Attwood, distributor of Heineken, Cambrew Limited, Dimarrs Cambodia (Guinness) and Interlocal Exim Pte Ltd. The main purpose of the BSIC is to constantly evaluate and seek improvements to the welfare or their beer promoters by setting an industry code of conduct for their beer promoters and external parties.

An in-depth research study was conducted in 2009 by CAS, which indicated significant improvements in the welfare of their promoters. However, there were some areas for improvements which the BSIC had acknowledged and acted on. As part of their constant surveillance, the BSIC wishes to evaluate the effectiveness of their implementation through quarterly research findings. Areas now being evaluated include:

• Employment Status – addresses issue of remuneration• Organization of Work – to address any BP grievances• Uniforms – company branded standards• Transport – to minimize risk of harassment• Training and information – on a range of issues• Harassment – to ensure and promote a zero tolerance policy• Alcohol – to promote practice of not sitting and drinking with customers


Background & Objectives

Specific areas being monitored also include the following:

• BP views on wearing BSIC logo• BP views on working conditions• BP reported having a written contract• Average salaries• Input on incentive systems• BP understanding of paid annual leave entitlement• BP understanding of maternity leave policies• BP awareness of company grievance procedures• Instance of making a complaint• Opinion of uniform and stash• Details on company transportation• Opinions of training offered• Incidence of sexual harassment• Frequency of sitting with customers and drinking customers• Incidence of customers trying to force them to drink alcohol


Research Approach & Methodology

Methodology: Quantitative - Face to face interviews using a structure questionnaire

Frequency: On-going monthly monitoringMonthly updates with quarterly reporting

Respondent Profile: Female Beer Promoters (BP)Mix of different beer company BP

Geographical Coverage Phnom Penh/Siem Reapand Sample Size:

n=564BSIC BP (January – June)n=80 non-BSIC BP (March – June)

FW to continue through December


Research Approach & Methodology

Some further notes of clarification on this study:

• It was decided starting in March to also interview a sample of non-BSIC BP for comparison. A total of n=20 non-BSIC were interviewed each month from March – June. These included BP from a number of companies including Budweiser, Singha, San Miguel, Stella Artois, Asahi and Hollandia.

• The minimum sample of n=75 BSIC was decreased by n=10 from March to accommodate for non-BSIC interviews and to keep the project under the agreed budget.

• A minimum of n=54 interviews were conducted for each BSIC member – more interviews could not be obtained for RSE Cambodia – Guinness, owing to small number of BPs.

• Some slight modifications were made to line of questioning over the past 6 months. These are noted on certain slides. In addition, certain questions were only asked of BSIC BP.

• Where possible, comparisons are made to 2008 and 2009 reports. 2010 total results are indicated by H1 and are only for BSIC BP. However, on certain slides these comparisons are not available owing to the following reasons:

- Data for 2008 and 2009 was either not available or incomplete, with some data shown only by company whereas some data is only shown for totals.

- Some questions were not asked in 2009, and particularly in 2008- Report is in Word format and was produced by another company. Hence, IRL does not

have access to the data tables.


Executive SummaryDemographic Profile

N %Young Beer Promoter (Age 18-24) 300 47%Older Beer Promoter (Age 25+) 344 53%Phnom Penh 492 76%Siem Reap 152 24%BSIC Member 564 88%Non - BSIC Member 80 12%Cambodia Brewery Ltd (CBL) 172 30%Cambrew 223 40%Attwood, distributor of Heineken 112 20%RSE Cambodia - Guinness 57 10%

Total

Age Group

Location

Company

Group

Employment Status


Employment StatusFirst Time Working As Beer Promoter -Overall By Segment

69%

90% 90% 92%

77%81%

68%

93%

Total - 2008 Total - 2009 Total - H12010

Non BSICMember

CambodiaBrewery Ltd

(CBL)

Cambrew Attwood,distributor of

Heineken

RSECambodia -Guinness

Almost all respondents have indicated that this is the first time they have ever worked as a Beer Promoter, with incidence of such having increased over the past 2 years.

BP View On BSIC Logo


BP View On Wearing BSIC LogoAwareness of BSIC Logo- Overall By Segment

97% 97% 98% 98%91%

53%

81%

Total - 2009 Total - H1 2010 Non BSICMember

CambodiaBrewery Ltd

(CBL)


Heineken

RSE Cambodia -Guinness

Awareness of the BSIC logo has improved dramatically – with almost all aware.


BP View On Wearing BSIC LogoBSIC Makes One More Respected In Workplace- Overall By Segment

99% 100% 98% 100% 100%

79%

91%


CambodiaBrewery Ltd

(CBL)


Heineken


Applicable from April to June

Almost all BSIC BP said the logo made them feel more respected.There is also the conception among just over ¾ of non-BSIC BP that the logo would make them feel more respected if they were to wear it and “know the benefits”.

Conditions Of Employment


Conditions Of EmploymentPossess Employment Contract – Overall By Segment

33%

93%

77%

94% 91%96%

86%

96%


Non BSICMember

CambodiaBrewery Ltd

(CBL)


Heineken


The majority of BSIC BP had an employment contract, which was not the case for non-BSIC BPs.

2009 90% 97% 97% 83%


80%

93%86% 84%

87%92%

76%

Total - 2008 Total - 2009 Total - H1 2010 CambodiaBrewery Ltd

(CBL)


Heineken

RSE Cambodia- Guinness

Conditions Of EmploymentPossess a Contract Copy- Overall By Company

Applicable for BSIC Members

There was a slight decrease in number of BP who said they possessed a copy of their contract. Big improvements for RSE Cambodia – Guinness.

2009 96% 99% 94% 27%


70%

98%

56%

100%96%

93%

100%


CambodiaBrewery Ltd

(CBL)


Heineken

RSE Cambodia- Guinness

Conditions Of EmploymentEntitled To Weekly/Monthly Time Off - Overall By Segment

There was a slight decrease in % of BSIC BP who said they are entitled to weekly/monthly time off, though this is biased by lower numbers for RSE Cambodia – Guinness. That said, they have seen improvements.

2009 100% 100% 100% 0%


Uniform91%

No9%

Conditions of EmploymentPerception Of Uniform/Sash- Overall By Segment

23%17%

3% 1% 5%12%

94% 88%

6% 4%

77%

96%83%

97% 99% 95%


Non BSICMember

CambodiaBrewery Ltd

(CBL)

Cambrew Attwood,distributor

of Heineken


Indecent DignifiedCompany Gives Uniform/Sash To

Staff

Almost all BSIC BP said the uniform/sash was dignified.

2009 97% 94% 97% 98%

BP Awareness Of Company Grievance

Procedures


BP Awareness of Company ProceduresPresence of Grievance Procedures in Current Company - Overall By Segment

44%

77%

91%

16%

88% 93% 96%84%


Non BSICMember

CambodiaBrewery Ltd

(CBL)


Heineken


Yes100%

Awareness of Direct Superior

There has been a steady increase in number of BSIC BP who knew there were grievance procedures in their companies. Most noted improvements were for Cambrew, Attwood, distributor of Heineken and RSE Cambodia-Guinness.The same can not be said of non-BSIC employers.

2009 93% 70% 67% 77%


BP Awareness of Company ProceduresFrequency of Serious Complaints Reported in Past 7 Months - Overall By Segment

56%

91% 93% 91% 95% 89%97% 93%

8% 8% 3% 8% 5%2%

30%

5% 1%14%

2%


Non BSICMember

CambodiaBrewery Ltd

(CBL)


Heineken


None Once 2-4 times


Very few BP reported any complaints in the past 7 months. And when compared to 2008, there is a much lower level of making complaints. This likely corresponds to noted decreases in sexual harassment.


15% 20% 25%13%

8%

67%25%

38%

72%

33%

50%

10%

50%

15%

60%

Total - H1 2010 Cambodia Brewery Ltd(CBL)

Cambrew Attwood, distributor ofHeineken


Yes, they all were Only some were None were Don't know

Instance of Making A ComplaintComplaints Registered by Superiors - Overall By Company

N=40

Caution: Small Sample Size


Incomplete/No data

for 2008/2009

Of those reporting a complaint, over half said the complaint was not registered by superiors.


Instance of Making A ComplaintDetails of First Grievance Occasion (1)- By Overall

48%

20%

15%

5%

5%

Customer uses impolite words while pushher to drink with them

Customer gets drunk and then try's to hugthe beer promoter body while using

impolite words

Outlet owner forced beer promoter todrink and then have sex with customers

Dispute with outlet owner regardingsharing commissions

Customer reproved then threw a beerbottle to beer promoter

Types of Outlets Details of Grievances

13%

45%43%

BBQ Beer garden Restaurant

N=40




87% 85% 86%94%

87%

13% 15% 14%6%

13%

Total - H1 2010 Cambodia BreweryLtd (CBL)

Cambrew Attwood, distributorof Heineken


Because I didn't have any Other reason

Instance of Making A ComplaintReasons for Not Reporting Grievances to Direct Superiors -Overall By Company


Incomplete/No data

for 2008/2009

The reasons for not reporting complaints was very simple – because they didn’t have any.


Instance of Making A ComplaintFamiliarity With Grievance Form- Overall By Company

82%

37% 42% 39%

18%

54%

61%63% 58%46%


Cambrew Attwood, distributor ofHeineken


Yes No


Incomplete/No data

for 2008/2009

About 2/3 of BP were familiar with the grievance form – this was much higher for Attwood, distributor of Heineken.

Salary & Input on Incentive System


Salary & Input On Incentive SystemsCurrent Base Salary- Overall By Segment

11% 49%

11%

22%

2%37%

14%

10%

20%

10%

59%

33%

66%

30%

49%

35%

15%

20%

18%

2%

7%

64%

Total - H1 2010

Non BSIC Member

Cambodia Brewery Ltd(CBL)

Cambrew

Attwood, distributor ofHeineken


Less than 50$ 51-60$ 61-70$ More than 70$

Average Base Salary

Total H1 2010

61.1

84.1

63.3

56.8

66.2

64.0

Incomplete/No data

for 2008/2009

Average base salary for BSIC BP was $61.1 US per month. However, this doesn’t differentiate between those working part time and full-time, nor does it include extra pay for holidays, paid time off or working more than one shift, so full-time salary plus any incentives is most likely much higher.

69.4

57.2

63.7

53.9

Average Base

Salary 2009


Salary & Input On Incentive SystemsCurrent Total Salary – BSIC Members

2008 2009 2010 2008 2009 2010 2008 2009 2010 2008 2009 2010Base Salary 66 53.9 63 52 63.7 57 71 69.4 66 62 57.2 64Other Payment N/A N/A 6 N/A N/A 8 N/A N/A 8 N/A N/A 1Commission N/A N/A 13 N/A N/A 49 N/A N/A 8 N/A N/A 22

TOTAL 92.8 102 82 151 136.8 114 88.2 97.9 82 95.2 86.1 87

CBL Cambrew Attwood (Heineken) RSE Cam. (Guinness)

Average salary a combination of base and other payments (holiday, time off, sick leave, travel allowances, etc.) and excluding commission showed the following for each of the BSIC members:

• CBL - $69• Cambrew - $65• Attwood (Heineken) - $74• RSE Cambodia (Guinness) - $65

The average base salary for non-BSIC was $55 per month, though many BP working for other beer companies are mostly paid on a commission basis.


73%

56%

90%95%95%

75%

Total - H1 2010 Non BSIC Member Cambodia BreweryLtd (CBL)



Salary & Input On Incentive SystemsEarn Incentives/Commissions Besides Salary - Overall By Segment

Incomplete/No data

for 2008/2009

Most respondents earn incentives/commissions from sales – the except was Cambrew, which had much lower figures.


80% 80% 84% 82% 74%83%

43% 31%

5%

33%13%

21%

8%8% 5%

14%

3%

8%

22%26%

2% 8%3%16%

Total - H1 2010 Non BSICMember

CambodiaBrewery Ltd

(CBL)


Heineken


Sitting down with customersRefilling iceSitting and drinking with customersFor good service rendered (Prompt refill of beer, quick delivery of beer order, etc)

Salary & Input On Incentive SystemsCommissions Received For Extra-Contractual Work (Reasons) – Overall by Segment


Incomplete/No data

for 2008/2009

The primary commissions received was for good services rendered, with only 22% saying it was for sitting and drinking with customers.

Incidence of Sexual Harassment


Incidence of Sexual HarassmentAwareness of Sexual Harassment- Overall By Segment

96%

89%85%

90%93%

84%

98%

88%


Non BSICMember

CambodiaBrewery Ltd

(CBL)


Heineken


Awareness of sexual harassment has dropped slightly but still is high at just under 90%. High levels for non BSIC BP would indicate they are learning about sexual harrassment outside their respective companies.


58% 61% 53%63%

9%

20%

38%

22% 21%19%

16%

31% 26% 32%

13%6%

14%11% 17% 14%

4%2% 8%

4%

60% 57%

37% 38% 37%41% 26%

35% 39%35%

Total - H1 2010 Non BSIC member Cambodia BreweryLtd (CBL)



Challenge/discuss/negotiate with man in question Complain to my direct superior

Nothing/ignore Move to serve another table

Complain to the outlet owner Complain to another beer company representative

Incidence of Sexual HarassmentActions To Take During Occasions of Sexual Harassment – Overall By Segment


9%4%2%

42%

56%

42%33%

19%32%

55%

28%

52% 46%

74%61%

1%1%2%9%

2%

15%

2% 2%

41%

25%

49%

48%


Non BSICMember

CambodiaBrewery Ltd

(CBL)


Heineken


Every night Several nights a weekSeveral times a month RarelyNever

Incidence of Sexual HarassmentFrequency of Sexual Harassment at Workplace- Overall By Segment

The frequency of sexual harassment continues to decline, with over half saying it never occurs, compared to only 19% in 2008. However, frequency of sexual harrasment still occurs and is much higher among non-BSIC BPs.


91%

43%

87%93% 94%

86%


CambodiaBrewery Ltd

(CBL)


Heineken


Incidence of Sexual HarassmentHave You Seen a Poster “ Do Not Forgive Those Harassing BPs”

Applicable from May & June

Opinions On Training


93%98%

84%92% 92%




Opinions On TrainingTraining Received on Selling Beer Safely- Overall By Company


Incomplete/No data

for 2008/2009

Almost all BP had received training on selling beer safely.

2009 100% 98% 100% 100%


69%

25%

93%

100% 99%

80%

96%97%


Non BSICMember

CambodiaBrewery Ltd

(CBL)


Heineken


Opinions On TrainingTraining Received on Addressing Sexual Harassment Issues - Overall By Segment

Almost all BP had received training on addressing sexual harassment – not the case for non-BSIC BP.

2009 100% 96% 98% 91%


75%

39%

98% 100% 98% 98%99% 99%


Non BSICMember

CambodiaBrewery Ltd

(CBL)


Heineken


Opinions On TrainingTraining Received on Refusing Beer/Alcohol Politely- Overall By Segment

Almost all BP had received training on refusing beer politely – again, not the case for non-BSIC BP.

2009 100% 98% 100% 100%


60%

25%

16%

13%

8%

7%

6%

5%

Know how to refuse/deal with customers

Know how to use polite words

Know how to use modest words

Know how to sell safety

Know how to deal with customers

Can control feelings of anger

Know how to solve problem when customers approachabout sex

Know how to be patient when working

Opinions On TrainingBehavioral Change in Workplace After Receiving Training - By Overall


Main behavioral change from training was knowing how to refuse/deal with customers.

Drinking With Customers


14% 10% 12%

68%

13% 11% 8%

25%

84% 90% 87%

13%

87% 88% 92%

75%

0%

20%

0%


Non BSICMember

CambodiaBrewery Ltd

(CBL)


Heineken


Yes No Don't know

Drinking With CustomersBeer Company Allows to Sit and Drink with Customers - Overall By Segment

Almost all BSIC BP knew there companies had policies against sitting and drinking with customers.

2009 (Yes) 12% 7% 13% 17%


23%15% 15% 17% 18%

8%21% 21%

65%74% 67%

74%

77%

66%

17%10% 17%

8%14%

7%11%

6% 4% 1% 1% 1% 2%

72%

52%

19%


Non BSICMember

CambodiaBrewery Ltd

(CBL)


Heineken


Never Sometime Often Always

Drinking With CustomersPressure from Customer - Overall By Segment

Incidence of sometimes being pressurized to drink with customers has actually increased, though being pressured “often” is on the decline.


39%26%

14%23%

16% 11%20%

9%

1%

8% 8%6% 6%

73%90%

79%84% 94%

84%

96%

1% 1%

4%

2% 2% 1%8%

16%

74%

4%


Non BSICMember

CambodiaBrewery Ltd

(CBL)


Heineken


Nothing/Ignore Make a complaint

Challenge/discuss with customer Agree to drink less amount then leave them

Show BSIC logo badge Leave them

Drinking With CustomersTackling Customer Pressures- Overall By Segment

Incidence of challenging customers has improved.


89%93%

100%

43%48%

85%

Total - H1 2010 Non BSIC member Cambodia BreweryLtd (CBL)



Opinions On TrainingHave you Ever Seen Poster “Do Not Force BP to Drink”- Overall By Segment

Applicable from May & June & Guinness has small sample size


30% 27%

47%

17%

39% 42%

83%

23%

67%

49%

67%

59% 56%

58%

5% 2%17%

2% 1%

11%

7%0%

9%17%

53%

10%

1%


Non BSICMember

CambodiaBrewery Ltd

(CBL)


Heineken


Never Sometime Often Always

Drinking With CustomersOccasions Of Drinking With Customers During Work Hours- Overall By Segment

Incidence of drinking with customers has seen a big decline, with just under half of BP now saying they never drink with customers. Attwood, distributor of Heineken performed best in this regard. In contrast, almost 90% of non-BSIC BP will sometimes or often drink with customers during work hours.

2009 (Never) 13% 24% 69% 28%

Other Issues


99% 100% 100%97%100% 100%

3%1%

Total - H1 2010 Non BSIC Member Cambodia BreweryLtd (CBL)



Yes No

Applicable from April to June & Guinness has small sample size

Other Issues Awareness that HIV/AIDs Can Be Contracted Through Unsafe Intercourse


Other Issues Received Training Covering HIV/Aids Topic- Overall By Segment

94% 95%

67%

23%

92%

77%

100%

33%

5%8%6%


CambodiaBrewery Ltd

(CBL)


Heineken


Yes No



Other IssuesStatements Describing Current Sentiments Towards Work- Overall By Segment

51%

67%80%

69%77% 80%

94%

65%

31%18%

26%20% 19%

35%

2% 2% 5% 3% 1% 2%

42%

4%


Non BSICMember

CambodiaBrewery Ltd

(CBL)


Heineken


I am happy with them They could be better, but they are bearable I am unhappy with them

Happiness with their current employment continues to improve, with 4 out of 5 BP having high levels of happiness and only 2% expressing dissatisfaction.

2009 (I am happy with them) 62% 71% 86% 61%


76%

24%

Respondent totally happy

Respondent suggested changes

51%

3%

9%

7%

12%

5%

3%

5%

4%

Request to increase base salary

Request to get stable salary (no decrease in salaryeven not meet target)

Do not be too strict about urgent leave

Request company to replace new uniform for BPs

Company to increase the incentivepayment/commission rate

Do not cut the money of incentive payment

Request to change selling conditions (from keg tocarton)

Request to have a meeting once every 2 weeks

Direct superior should not use impolite words withBPs

Other IssuesThree Suggested Changes at Workplace- Overall By BSIC Member

Salary

Contact

Incentive

Working Rights




Summary & Recommendations


Conclusions

Overall, there has been vast improvement in certain BSIC indictors over the past two years, and has included the following areas:

• Feeling the BSIC logo makes them feel more respected• Knowledge about paid leave• Amount of training on sexual harassment, refusing customers and selling

beer safely• Less frequency of sexual harassment• Less incidence of drinking during work hours. Incidence of never drinking

during work hours has improved by over 50%• And importantly, BP satisfaction with their current work conditions

In marked contrast, the performance of non-BSIC companies is much lower, with much lower indicators as can be seen in the comparisons shown.


Conclusions

However, though performance of BSIC companies was very positive there are some areas for improvement:

• Making sure all BPs have written copies of their contracts• Continue to educate and monitor BPs so incidence of drinking at the work

place continues to decrease• Continue to educate consumers and BPs that there is a zero-tolerance

sexual harassment policy for all BSIC BP (and should be for all BP), and to come up with initiatives so levels of sexual harassment.

• Encourage other non-BSIC members to adopt similar policies as those of the BSIC. These have provide largely favorable in improving the working conditions, the key goal of BSIC initiates.


# 3

# 2

Observations# 1

• The incidence of BP being first type of employment continues to increase – and at the same time, BPs are happy with their current state of employment.

Recommendations

• Continue current activities promoting good working conditions for BPs. Education in the first few months of employment is critical.

Observations# 2

• The BSIC logo and its initiatives do make BPs feel more respected in the workplace – and has also worked to change behaviors of customers.

• CHECK NT SLIDE….

• ……………………………………………….

• ………………………………………………….

Recommendations

• BSIC logo should remain an important part of uniform.

• Effort should be made in recruiting other beer companies to join BSIC. It pays dividends for the BP.

Observations# 3

• While most BSIC BP are aware of paid leave and other benefits, there was incidence of BP not having a written copy of their contract.

• …..Insert details of Implication……

• ……………………………………………….

• ………………………………………………….

Recommendations

• Consider providing some type of written copy at start of employment, even it is probationary. History shows contracts provide peace of mind and inclusion.

Summary & ImplicationsSummary & Implications ImplicationsImplications


Summary and ImplicationsSummary and Implications

# 3

# 2

Observations# 4

• There has been a noted decrease in reported amounts of sexual harassment in the work place. However, it still occurs on occasion.

Recommendations

• Continue to emphasis sexual harassment is not tolerated. This involves not only initiatives by BSIC members but also BPs themselves and those at workplace.

Observations# 5

• Big decreases in incidence of drinking at the workplace, especially the case of sitting and drinking with customers. However, about ½ still do drink on occasions.

• CHECK NT SLIDE….

• ……………………………………………….

• ………………………………………………….

Recommendations

• Continues to stress drinking is not allowed.

• Would suggest improved monitoring so practice does not occur.

• …..Insert details of Implication……

• ……………………………………………….

• ………………………………………………….

Recommendations

• This should be commended. Whatever is being done should continue.

Summary & ImplicationsSummary & Implications

Observations# 6

• About 4 in 5 BSIC BP were very happy with their current state of employment with the rest fairly happy and only 2% saying they were unhappy.

Thank you!

ESOMAR membership is individual only. Laurent Notin, as the General Manager at Indochina Research (Cambodia) Ltd. is the ESOMAR member. As an ESOMAR member, he complies with the ICC/ESOMAR International Code of Marketing and Social Research Practice.

Documents

Project BSIC Project Monitoring Final Report For BSIC Total H1 (January-June) - 2010 Vietnam – Cambodia – Laos