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Social dialogue is a win-win in times of crisis

Social dialogue is a key strategy for management and workers to find win-win solutions. One of the Better Work Indonesia (BWI) participating companies shows the benefits gained from social dialogues for both workers’ welfare and business continuity.

Feature | Bogor, West Java, Indonesia | 05 May 2021
Workers should follow the health protocols for safer workplaces
BOGOR, Indonesia (ILO News) – The wall clock at PT Sepatu Mas Idaman (SEMASI), a leather footwear company in Bogor, West Java, shows 10:00 am. Mario Prostasius, Head of the Federation of Indonesian Metal Workers Union, begins his morning patrol to all production facilities in the factory. He has started his patrol routine since the outbreak of the COVID-19 pandemic to ensure the safety of all factory workers.

“We never experience an outbreak of this scale and we need to continue the production for the interests of both workers and the management. Thus, one of agreed measures is to patrol the factory every morning to ensure the application of the health protocols,” said Mario.

We never experience an outbreak of this scale and we need to continue the production for the interests of both workers and the management. Thus, one of agreed measures is to patrol the factory every morning to ensure the application of the health protocols."

Mario Prostasius, Head of the Federation of Indonesian Metal Workers Union of PT SEMASI
Ensuring the compliance of all 1,600 workers to health protocols is only one of the joint measures taken by the management and workers. As COVID-19 hit Indonesia in March 2020, PT SEMASI as an export-oriented shoes manufacturer experienced a drastic decline of orders (up to 70 percent less). In the brink of closure, both the management and workers representatives sat down together and agreed to avoid any lay-off.

The representatives of workers were also reconciled. The two existing trade unions in the company, the Federation of Indonesian Metal Workers Union and the Independent Workers Union, agreed to work together and find better solutions to survive the pandemic.

“It was not easy to come to an agreement. Each of us had our opinion. Yet, for the sake of business continuity and livelihoods of all the workers and their families, we agreed to put aside our differences and enter into dialogue to find the best solutions,” said Iwan Ridwan, Head of the Independent Workers Union.

Through dialogue and negotiation, workers agreed to take the company’s offered furlough with compensation while waiting for the improvement of the economic condition and the return of orders from buyers. “We have carefully examined and considered various different scenarios. At that time, furlough with compensation was the best solution for both the company and workers,” said Mario.

We cannot work alone. We need to work hand-in-hand to fight the pandemic by preventing the transmission and ensuring a safe working environment."

Henry Listiandry, PT SEMASI’s Human Resource Department and General Affairs Manager
As one of the ILO’s Better Work Indonesia (BWI) participating companies, social dialogue is nothing new for PT SEMASI. They understand the benefits gained from social dialogue and labour-management cooperation. Together with other participating companies, PT SEMASI has participated in BWI’s various virtual trainings and seminars about the importance of workplace communication, negotiations and empowerment. These trainings and support services have been on for many years.

“We have facilitated a joint commitment signed by workers’ and employers’ organizations, Collaboration to Protect Safety and Health, Business Sustainability and Welfare of Workers/Labour in the Export-Oriented Garment/Footwear Sectors in Indonesia, to uphold social dialogues for employment and business resilience. Through social dialogue, we believe that more complete, more easily accepted and more fitting solutions can be achieved benefiting both workers and employers,” said Maria Vasquez, Chief Technical Advisor of BWI.

Through social dialogue, we believe that more complete, more easily accepted and more fitting solutions can be achieved benefiting both workers and employers."

Maria Vasquez, Chief Technical Advisor of BWI
To date, as the factory’s operations have gradually picked up, the established labour-management cooperation continues. In addition to daily patrolling, representatives of workers have used a mobile messaging application to continue lending their ears as well as collecting inputs and feedbacks. Some suggestions include the adjustment of production layout to ensure physical distancing, the installment of hand-washing facilities and the usage of masks.

Henry Listiandry, PT SEMASI’s Human Resource Department and General Affairs Manager, appraised the commitment shown by the trade unions to support business continuity, improve productivity and maintain safety and health at work. “We cannot work alone. We need to work hand-in-hand to fight the pandemic by preventing the transmission and ensuring a safe working environment,” stated Henry.

The time in wall clock now shows 11:00 am. An hour has passed and Mario is still patrolling. Sometimes he makes a stop to ask workers to maintain distance, or reminds them about health protocols, listens to requests or collects inputs. “Here is the fixed price. Workers need to be healthy and productive while, at the same time, the factory should continue its operation and production,” he concluded.

BWI is a partnership between the International Labour Organization (ILO) and the International Finance Corporation (IFC). The programme aims to improve compliance with national labour law and international labour standards and promote competitiveness in garment global supply chains.