Sharing lessons learnt in promoting evidence-based wages fixing and collective bargaining in the garment sector

To mark the closing of the Labour Standards in Global Supply Chains (LSGSC) Project, a workshop was conducted in Bandung, attended by 40 key project partners from national and provincial levels. “The main objectives of the closing workshop are to showcase achievements and contributions of the Project. It is also aimed to identify follow-up activities that could be carried out by the ILO and its constituents in Indonesia,” explained Christianus Panjaitan, Project Coordinator of the ILO’s LSGSC Project.

We need to continue what we have achieved together through this Project. We also need to make the best use of the tools, methods and manuals produced under the Project to ensure the sustainability of the initiatives."

Adriani, Director of Wages of the Ministry of Manpower

In her closing remarks, Adriani, Director of Wages of the Ministry of Manpower, congratulated the LSGSC Project for its achievements and contributions to the Indonesia’s industrial relations, particularly on promoting development of a more effective collective bargaining, dispute settlement, and national wage system.

“We need to continue what we have achieved together through this Project. We also need to make the best use of the tools, methods and manuals produced under the Project to ensure the sustainability of the initiatives,” she stated.

Outputs of the project include:

• Wage policy monitoring tools using a balanced score card methodology;
• Collective bargaining agreements in 12 pilot enterprises negotiated through interest-based collective bargaining methods; and
  
• Compilation of stakeholder perspectives on the development of a more effective dispute settlement system in Indonesia.

Benefits gained using interest-based collective bargaining methods

One of the trainers on collective bargaining who had been involved in LSGSC project activities in Indonesia, Santo Adiprayitno from Serikat Pekerja Nasional (SPN) greatly appreciated the evidence-based methodology introduced by the LSGSC Project. As a unionist, he had been involved in numerous negotiation processes and in numerous trainings on industrial relations.

By using the evidence-based method, we can eliminate distrust between workers and employers. The method promotes transparency, openness and the use of factual data; thus, this can effectively avoid unnecessary disputes and promote problem solving at the bipartite level."

Santo Adiprayitno from Serikat Pekerja Nasional (SPN)

“By using the evidence-based method, we can eliminate distrust between workers and employers. The method promotes transparency, openness and the use of factual data; thus, this can effectively avoid unnecessary disputes and promote problem solving at the bipartite level,” he said.

One of the 12 companies that witnessed improvements in its working relations was PT Semarang Garment. Aris Susatyo, the Trade Union Representative of PT Semarang Garment, reported that positive changes were felt by the workers when they could renegotiate the collective bargaining agreement with the management.

“Before joining the ILO training on collective bargaining agreement, other fellow workers and I had a lack of understanding about collective bargaining agreement. After I studied the contents of the company’s collective agreement, around 70 to 80 percent were the replication from the existing labour laws and regulations,” said Susatyo telling his experience.

After going through an intensive negotiation process, PT Semarang Garment was able to develop a new collective bargaining agreement that was well-received by both workers and the management.

A similar feeling was also shared by Eduard Peea, Head of the Human Resource Development of PT Doosan Busana in Sukabumi, West Java. After participating in the collective bargaining training of the Project, he learnt how to better communicate and collaborate with the company’s 1,200 employees.

Before there was only one way communication from the management to the workers. But after the training, we organize dialogues with workers and their representatives. As a result, we now have higher productivity and openness."

Eduard Peea, Head of the Human Resource Development of PT Doosan Busana in Sukabumi, West Java

“Before there was only one way communication from the management to the workers. But after the training, we organize dialogues with workers and their representatives. As a result, we now have higher productivity and openness,” he told. Another positive result was that the company was also able to develop a new collective bargaining agreement in November 2018 that was able to accommodate both needs and interests of workers and the management.

Funded by the German Federal Ministry for Development Cooperation (BMZ) and Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ), the LSGSC Project implemented activities in Cambodia, Indonesia, and Pakistan, in addition to a range of regional and global activities.