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FMO MODEL CODE OF CONDUCT FOR LABOUR PRACTICES

Introduction The purpose of this model code is to assist your company in promoting international labour standards and the inclusion of trade union rights in codes of conduct covering labour practices. It is also meant to encourage the use of uniform language in codes of conduct. This model code can also assist your company in negotiations with trade union organisations and it can be used as a benchmark for evaluating any code of labour practice your company may already have adopted. This code is based on the Basic Code of Labour Practice drawn up by the ICFTU the International Confederation of Free Trade Unions (www.icftu.org) which was adopted after extensive consultations with various trade union organisations and with other interested parties. Its objective is to establish a minimum list of standards that should be included in all codes of conduct covering labour practices. It is not meant, and should not be interpreted to mean, that codes of conduct that are the result of an agreement reached via collective bargaining with an appropriate trade union organisation are to be limited to the provisions of this code. Background and instructions FMO adopted a social policy in 2000 as part of its overall sustainability policy. In doing so, FMO seeks to ensure that its clients observe international labour standards in order to guarantee a minimum level of social responsibility of its investments. FMOs social policy is based on adherence to various international agreements1 and on internationally recognised labour standards, within the framework of the International Labour Organisation (ILO). The full text of all ILO conventions2 with an overview of all conventions signed and ratified by all countries, can be found at: http://webfusion.ilo.org/public/db/standards/normes/appl/index.cfm?lang=EN

The Universal Declaration of Human Rights, the United Nations Convention to Eliminate All Forms of Discrimination Against Women and the United Nations Convention on the Rights of the Child. 2 Instructions for use: Click on by country (top left corner), then click on continent and on country; or Click on by convention (top left corner); all conventions will then appear in the left-hand column; Click on the number of the convention; the title of the convention will then appear on the righthand side of the screen; Click on the title and the full text will appear (text also available in French and Spanish).

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CODE OF CONDUCT FOR LABOUR PRACTICES

Preamble 1. Biwater (Pty) Ltd recognises its responsibilities to workers for the conditions under which its products or services are made/provided and that these responsibilities extend to all workers producing products or services for Biwater (Pty) Ltd whether or not they are employees of Biwater (Pty) Ltd. 2. Any workers providing services to or producing products or services manufactured, sold or distributed by Biwater (Pty) Ltd must be provided with a living wage and decent working conditions, and the international labour standards established by Conventions 29, 87, 98, 100, 105, 111, 135 and 138 of the International Labour Organisation must be observed. 3. Biwater (Pty) Ltd will require its contractors and their sub-contractors to provide these conditions and observe these standards when providing services to or producing or distributing products or components of products for Biwater (Pty) Ltd. Biwater (Pty) Ltd will assess whether the provisions of this Code can be met prior to engaging contractors and subcontractors. 4. For the purposes of this code, the term contractor shall mean any natural or legal person who contracts with Biwater (Pty) Ltd to perform work or provide services. The term "sub-contractor" shall mean any natural or legal person who contracts with a contractor, as defined above, for the purpose of performing work or providing services related to or as part of an agreement with Biwater (Pty) Ltd. Provisions 5. Biwater (Pty) Ltd and its contractors and their subcontractors involved in providing services to or the production and/or distribution of products for Biwater (Pty) Ltd shall ensure that: EMPLOYMENT IS FREELY CHOSEN There shall be no use of forced labour, including bonded or involuntary prison labour (ILO Conventions 29 and 105), nor shall workers be required to lodge "deposits" or their identity papers with their employer. THERE IS NO DISCRIMINATION IN EMPLOYMENT Equality of opportunity and treatment regardless of race, colour, sex, religion, political opinion, nationality, social origin or other distinguishing characteristics shall be ensured (ILO Conventions 100 and 111, as well as the ILO Code of Practice for HIV/AIDS)). CHILD LABOUR IS NOT USED There shall be no use of child labour. Only workers above the age of 15 or above the compulsory school-leaving age, whichever is higher, shall be engaged (ILO Convention 138 and 182). Adequate transitional economic assistance and appropriate educational opportunities shall be provided for any replaced child workers. FREEDOM OF ASSOCIATION AND THE RIGHT TO COLLECTIVE BARGAINING ARE RESPECTED The right of all workers to form and join trade unions and to bargain collectively shall be recognised (ILO Conventions 87 and 98). Workers representatives shall not be the subject of discrimination and shall have access to all workplaces necessary to enable them to carry out their representation functions (ILO Convention 135 and Recommendation 143). Employers shall adopt a positive approach towards the activities of trade unions and an open attitude towards their organisational activities.

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Wages and benefits paid for a standard working week shall meet at least the legal or industry minimum standards and shall always be sufficient to meet basic needs of workers and their families and to provide some discretionary income. Deductions from wages for disciplinary measures shall not be permitted nor shall any deductions from wages not provided for by national law be permitted without the express consent of the worker concerned. All workers shall be provided with written and understandable information about the conditions in respect of wages before they enter employment. They shall also be given the particulars of their wages for the pay period concerned each time that they are paid. HOURS OF WORK ARE NOT EXCESSIVE Hours of work shall comply with applicable laws and industry standards. Workers shall in any case be required to work in excess of 48 hours per week on a regular basis and shall be provided with at least one day off in every 7 day period. Overtime shall be voluntary, shall not exceed 12 hours per week, shall not be required to be worked on a regular basis, and shall always be compensated for at a premium rate. WORKING CONDITIONS ARE DECENT A safe and hygienic working environment shall be provided and best occupational health and safety practice shall be promoted, bearing in mind the prevailing state of knowledge within the industry and of any specific hazards. Physical abuse, threats of physical abuse, unusual punishments or discipline, sexual and other harassment, and intimidation by the employer are strictly prohibited. THE EMPLOYMENT RELATIONSHIP IS ESTABLISHED Obligations to employees under labour or social security laws and regulations arising from the regular employment relationship shall not be avoided through the use of labour-only contracting arrangements, or through apprenticeship schemes where there is no real intent to impart skills or provide regular employment. Younger workers shall be provided with the opportunity to participate in education and training programmes. RETRENCHMENT PROCESSES WILL BE TRANSPARENT AND FAIR When considering making changes in its activities which will have significant effects on the employment situation (for example reorganisation, merger, take-over or transfer of production), the company shall inform the relevant authorities and employee representatives and trade unions a reasonable time in advance. The basic principle shall be that the consequences should be considered jointly in order to minimise the negative effects as much as possible. This is of particular importance if a branch is to be closed, resulting in collective redundancy or dismissal. The management shall as far as possible inform the interested parties before the definitive decision is taken. If applicable 6. Contractors and subcontractors shall undertake to support and co-operate in the implementation and monitoring of this code by: providing Biwater Pty Ltd with relevant information concerning their operations; permitting inspection of their workplaces and operations by approved inspectors at any time; maintaining records of the name, age, hours worked and wages paid for each worker and making these available to approved inspectors on request; informing the workers concerned, verbally and in writing, of the provisions of this Code; refraining from disciplinary action, dismissal or otherwise discriminating against any worker for providing information concerning observance of this code.

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7. Contractors and subcontractors found to be in breach of one or more terms of the code shall lose the right to provide services to or produce or organise production of goods for Biwater (Pty) Ltd. 8. Questions as to the interpretation of the meaning of the provisions of the code shall be resolved according to the procedure outlined in the (name of implementation and monitoring agreement between the company and trade union and any other organisations). 9. The provisions of this code constitute only minimum standards. Biwater Pty Ltd does not intend, will not use, and will not allow any contractor, subcontractor, principal supplier or licensee to use these minimum standards and conditions as maximum standards or as the only conditions permitted by Biwater Pty Ltd or to serve as the basis for any claim as to what standards or conditions of employment should be provided. Social Management System For concrete elaboration of this Code of Conduct, please refer to the FMO outline for a Social Management System.