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“Organized theft on a massive scale”: the reality of severance theft in Indonesia

Published: June 26, 2019

Abruptly and without warning, the Indonesian garment company Jaba Garmindo shut down operations at its two factories in April of 2015, leaving over 4,000 workers without their legally mandated severance. The sudden departure reflects a consistent trend within garment factories around the globe; in response to intense market pressure to cut production costs, many factories…

PT Sarasa

Published: May 16, 2019

The WRC chose to initiate the assessment when it learned that the factory had engaged in a lock-out of employees during the course of annual wage negotiations with the union that represents the plants workers, known as FSBKU. Subsequent to the lock-out and the initiation of the WRC’s assessment, PT Sarasa management announced that the facility would be shut down permanently. The WRC’s investigation found strong evidence supporting the conclusion that the lock-out and subsequent mass termination were motivated by anti-union animus, as a measure to retaliate against workers for the exercise of protected associational rights.

PT Panca Brothers Swakarsa

Published: May 16, 2019

After the vast majority of former workers were reemployed at PT PBS, after a constructive relationship between management and worker representatives was established, and after management expressed a willingness to resume contract negotiations with the union once business stabilized, the WRC was optimistic that a high degree of compliance could be achieved at this factory. Unfortunately, PT PBS management has not followed through on its commitment to respect its employees’ rights of association.

PT Panarub

Published: May 16, 2019

Based upon information from Adidas, OCAA, local non-governmental organizations, and our own preliminary research, the WRC identified a number of areas of concern for investigation. These included: Legally Mandated Benefits; Freedom of Association; Occupational Health and Safety; Psychological and Physical Abuse of Employees; Arbitrary Firings and Forced Resignations; Hours of Work and Wages; Use of the Contract Labor System, and the Imposition of Improper Expenses on Workers.

PT Mulia Knitting

Published: May 16, 2019

The WRC’s investigation of PT Mulia Knitting was triggered by a worker complaint alleging serious violations of worker rights in the area of freedom of association.

PT Kolon Langgeng

Published: May 16, 2019

In November 2002, the WRC received a complaint from workers at PT Kolon Langgeng, including allegations that, if valid, would constitute violations of Indonesian law and of college and university codes of conduct primarily in the realm of wages and benefits, forced and uncompensated overtime, and occupational health and safety.

PT Kizone

Published: May 16, 2019

The owner of PT Kizone fled Indonesia in Janaury 2011 without paying workers $3.3 million in legally mandated severance. More than 2,800 workers were affected.

PT Hann Chang Indonesia

Published: May 16, 2019

The event that triggered the worker complaint at PT Hann Chang was the announcement by management in mid-February that the factory would be closing and that workers would be paid an amount of severance substantially below the minimum required by law. The complaint also alleged other violations, primarily in the area of freedom of association.

PT Dae Joo Leports

Published: May 16, 2019

The International Labor Organization (ILO), in a 1998 publication, noted that “hours of work, overtime and wages, occupational health and safety, leave, provision of food and transport, social security and the special needs of women workers,” in addition to inadequate access to health care and restricted associational rights, are problems characteristic of export processing zones. In Indonesia’s export processing zones, and in the KBN’s North Jakarta branches in particular, some of these problems are starkly visible.

PT Dada

Published: May 16, 2019

Violations found include punishing sick leave, danger of severe heat stress, requiring homework, and freedom of association violations.