International Labour Project Brief Organization Better Work Indonesia

Objective To improve working conditions and productivity in targeted employment-intensive sectors by improving compliance with international core labour standards and Indonesia labour law. In tandem, the project will promote productivity and competitiveness of enterprises linked to the Indonesian global supply chain.

Key Partners n Ministry of Manpower n Ministry of Trade n Ministry of Industry n Ministry of National Development Planning n Indonesian Employers’ Association (Apindo) n Indonesian Textile Association (API) n Trade Union Confederations n International Buyers

Duration Phase I (July 2010 – June 2012, 2 years) Phase II (July 2012 – July 2015, 3 years)

Geographical The apparel industry in Banten, DKI Jakarta, Coverage West Java, Central Java and Yogyakarta. Country Programme Social Dialogue for Economic Growth & Principles and Reference Rights at Work: w Application of labour laws and practices fully in line with fundamental principles and rights at work, including through strengthened labour administration. w Employers and unions through bipartite cooperation to achieve results on labour market flexibility and job security.

Donor

Kingdom Swiss State Secretariat for of the Netherland Economic Affairs (SECO)

Budget USD 670,000 for Phase I Implementation USD 4,054,596 for Phase II Implementation

Contact M. Anis Agung Nugroho | National Operational Manager | [email protected] Muce Mochtar | Programme Officer | [email protected] Better Work Programme

Better Work Indonesia is a partnership between the International Labour Organization (ILO) and the International Finance Corporation (IFC). The programme aims to improve compliance with labour standards and promote competitiveness in global supply chains. Better Work focuses on scalable and sustainable solutions, through strengthening cooperation between governments, employers’ and workers’ organisations and international buyers. The protection of Project Background workers’ rights and entitlements helps distribute the benefits of Indonesia is one of the world’s compliance into production trade to promote human, social leading exporters of textiles and processes as part of their business and economic development. apparel products. This industry ethic. To ensure compliance, the Compliance with labour standards contributes significantly to the brands have been auditing their can assist enterprises to be more country’s economy providing suppliers’ working conditions. As competitive, by improving access over a million jobs and is a a result, suppliers are audited to new markets and buyers. major source of earnings. The under codes of conduct as The Better Work programme Indonesian apparel industry is dictated by each brand, which builds on the experience gained growing at over 8 percent per differs from brand to brand.This the ILO’s Better Factories annum as garment factories approach is not only expensive Cambodia project, which has not move from China to Indonesia and inefficient, but also generates only successfully improved working and other countries in the potentially confusing or contrary conditions and compliance region. This has resulted in interpretations of international with labour standards, but has major brands sourcing more labour standards and national also increased competitiveness garments from Indonesia. labour laws. through monitoring factory-level remediation and training. At the enterprise level, the Among actors involved in global benefits of a growing industry supply chains, there is strong Better Work Indonesia combines have often been shared with consensus that compliance independent enterprise workers who are struggling with labour standards is critical assessments with advisory and with job insecurity and short- to business success. However, training services to support term contracts. Unregulated auditing alone does not lead to practical improvement through outsourcing, non-compliance sustainable improvements in the workplace cooperation. Using in the payment of minimum workplace. Management and a specially designed online wages, and lack of workplace workers need to work together information management system, cooperation have led to to address non-compliance with factories can share assessment deteriorating working labour standards. There is a and remediation information conditions. necessity to adopt an integrated with their buyers. This in turn approach involving national allows buyers to reduce their own Meanwhile, international governments, workers’ and auditing and redirect resources to buyers/brands are increasingly employers’ organisations as well as fixing problems and focusing on demanding that their suppliers international buyers. sustainable solutions. integrate labour standards

Better Work Indonesia March 2015 March 2 A Range of Beneficiaries Achievements to Date Foundation and has been by far the most requested Beneficiaries include governments, 1. Registration of 121 factories training in 2014. workers, enterprises and buyers with BWI, located in the in global supply chains. Benefits Greater Area of Jakarta, West 7. Development of a mobile gained through participation Java (Bandung, Sukabumi and website to assist workers to in Better Work Indonesia may Majalengka) and Central Java calculate overtime payments. include: (Semarang) and Yogyakarta The mobile website has been (Sleman) Provinces. actively promoted by the Enterprises Federations involved in Better Increased market access 2. BWI is now reaching over Work. through demonstration of 245.000 workers through its 8. Capacity building for the labour standards compliance to interventions. tripartite constituents of BWI international buyers, enhanced 3. Registration of 22 major through a series of trainings reputation through commitment international buyers on freedom of association to improvement process, purchasing from Indonesian and collective bargaining. reduced worker turnover, and factories with BWI. There fewer audits. has been a significant 9. Increase of the percentage of factories registered with BWI Workers improvement in buyer participation with a number of with at least one trade union Better protection of worker buyers wanting to subscribe from 47 per cent in 2013 to 62 rights, more accurate payment all of their factories in the per cent in 2014 of wages and improved working programme. The third buyers’ conditions. Eighty percent 10. Supported the initiatives of forum was held at the end of of workers in the industry the Ministry of Manpower June 2014. are women, hence targeted on labour norms expert programmes to address the 4. Publication of BWI’s fourth (KNK) that is regulated under needs and issues confronted synthesis report, which a Ministerial Decree No. by women within and outside showed an improvement of 257/2014 by undertaking a the workplace, for example, compliance for factories in series of knowledge-sharing workplace harassment. As their second and third cycle of events for BWI registered employers must have at assessment. factories, labour inspectors least one percent of their at the local level as well workforce comprising people 5. Launch of a pilot project to as international brands/ with disabilities, approaches improve access for people buyers. The Ministerial to employ and accommodate with disabilities to decent Decree regulates that it is a people with disabilities are also jobs in the garment sector, in mandatory for each factory to addressed by the programme. collaboration with a private have a KNK that is responsible Workplace Trade Unions are training centre. The free-of- for factory self-assessment. strengthened to address the charge training took place for 11. Distribution of BWI related needs of their members. a two month period, training 43 participants as sewing information through BWI Governments operators in accordance with Website (until now 50.000 visitors) and social media like Export growth through increased garment industry standards. Facebook (22,498 likes ) and market access, a stronger During the sewing operator Twitter (1,332 Follower). reputation for safer investment training, international and improved capacity in labour garment companies with administration. established partnerships with BWI visited the training center Buyers to provide opportunities for Reduced audit burden and the trainees to work at their increased focus on long-term factories. improvement, interaction ILO Jakarta Office 6. Conducted trainings on Menara Thamrin Level 22, with national government Jl. M.H. Thamrin Kav. 3 and workers’ and employers’ supervisory skills for over 600 Jakarta 10250 supervisors from 22 factories. Tel. +62 21 391 3112; organizations and demonstrable Fax. +62 21 310 0766 contribution to better working The training was financially Email: [email protected]; conditions. supported by the Disney Website: www.ilo.org/jakarta

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