ILO convenes stakeholders to validate study on decent work and responsible business practices in electronics sector

The ILO is scaling up its support for decent work and industry upgrading in one of Indonesia’s leading manufacturing and export sectors.

14 December 2023

Content also available in: Bahasa Indonesia
The ILO’s Resilient, Inclusive and Sustainable Supply Chains Asia (RISSC) project organized a half-day validation workshop for its qualitative study titled “Decent work and responsible business practices in Indonesia's electronics sector.”. Funded by the Government of Japan, the ILO’s RISSC project aims to build a more resilient and sustainable electronic supply chain by addressing human and labour rights risks and expanding decent work.

Attended by more than 40 constituents and industry partners (online and in-person) from government, leading multinationals, sectoral associations and trade unions, the workshop examined the study’s key findings and discussed recommendations and next steps for the industry to close decent work gaps and improve business practices.

From the data and focus groups, we see men workers mostly work in technical lines, while women workers work in assembly lines, which in recent years have come under pressure from technology and increasing automation."

Widdi Mugijayani, Founder and Senior Economist at Svara Institute
Jointly conducted with SVARA Institute, the study was conducted from September to November 2023. Comprising an extensive desk review, ten in-depth interviews and five focus group discussions, the study identified key decent work challenges and opportunities within the sector, as well as areas the industry need to improve to align with international labour standards and evolving supply chain requirements.

Widdi Mugijayani, Founder and Senior Economist at Svara Institute, presented the key findings highlighting the following 10 key decent work themes, including employment opportunities, wages, working time, equality and non-discrimination, safe working environment, and social dialogue.

Some of the initial key findings included displacement risks due to automation, particularly affecting women workers. “From the data and focus groups, we see men workers mostly work in technical lines, while women workers work in assembly lines, which in recent years have come under pressure from technology and increasing automation,” explained Widdi.

Relevant stakeholders review and provide inputs during the group work. © ILO/Gita Lingga

We look forward to working with the participants in the coming year to develop joint actions to address the issues raised, and in so doing, help position the electronics sector as a model for responsible and inclusive business in Indonesia."

David Williams, Project Manager of ILO’s RISSC Project
Other finding showed that in terms of social dialogue, the majority of workers in Indonesia’s electronics sector have joined the trade unions and most companies already have a collective bargaining agreement. Similarly for the social protection, workers at the electronics sector have been protected and registered at both BPJS Employment and BPJS Health.

Guided by Tauvik Muhamad, Programme Coordinator of the ILO’s RISSC in Indonesia, the participants were divided into two groups to further examine the findings and provide their feedback ahead of finalization.

Concluding the validation workshop, David Williams, Project Manager of ILO’s RISSC Project, thanked participants for contributions and feedback, adding: “the ILO will take on board the participants’ views to ensure they’re well reflected in the final report. We look forward to working with the participants in the coming year to develop joint actions to address the issues raised, and in so doing, help position the electronics sector as a model for responsible and inclusive business in Indonesia."

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