NSK’s Supplier Workers Go on Strike Demanding Sectoral Minimum Wage and Regular Employment

Started from Monday, November 11, 2019 to November 14, 2019, 118 workers of PT HRS Indonesia who joined with Serikat Pekerja Metal Bersatu PT HRS Indonesia (United Metal Workers Union of PT HRS Indonesia) (SPMB PT HRSI) held a strike which is caused by failure of negotiations of seven times on a work agreement for a specified period of time (Perjanjian Kerja Waktu Tertentu or PKWT) or contractual workers and amount of sectoral minimum wages.

PT HRS Indonesia is a manufacturing company which is owned by Hirose Seiko Co., LTD, from Japan. PT HRS Indonesia was built since 2011 is located in Jl. Lombok 2 Blok O No. 5, Mekarwangi, Kecamatan Cikarang Barat Bekasi. The company produces bearing component (inner and outer) for PT. NSK Bearings Manufacturing Indonesia and sprocket lathe (gear) for SSI and NSK Warner.

The union issued 70 contractual workers who should be appointed to regular employees since the workers are hired in regular and continuously production line and the work agreement is not registered in the local labour office (Disnaker) of Bekasi district.

Furthermore, the workers’ minimum wage of 2019 is only IDR. 4,429,814 per month, whereas according to the Indonesia Standard Industrial Classification (Klasifikasi Baku Lapangan Usaha Indonesia or KBLI) and Governor of West Java Decree number 561/Kep.249-Yanbangsos/2019, the workers’ minimum wage should be IDR. 4,632,985 per month.

The workers have negotiated for seven times since September 12, 2019 to October 28, 2019. In the sixth negotiation, three workers’ demands were approved, including the contracted workers appointment to regular employees, but the employer changed their decision unilaterally in the next negotiations.

The workers sent a written strike notification to the labour office of Bekasi or Dinas Tenaga Kerja Kabupaten Bekasi (Disnaker Kabupaten Bekasi) on October 29, 2019 and to the employer on October 30, 2019.

Disnaker Kabupaten Bekasi bring the union and the employer to negotiations which are conducted on November 6, 2019 and November 7, 2019 and November 8, 2019. The three negotiations did not achieve any agreement and collective bargaining agreement, so according to Article 141 of Act Number 13 Year 2003 concerning Employment, the strike is continued.

Labour Inspector has examined in PT. HRS Indonesia, which resulted a number of findings, including the PKWT are not registered in the labour office, and which means the employer should appoint the contracted workers to permanent employees.

Hence, PT HRS Indonesia should fulfil the workers’ rights as below:

  1. Appointment of the 70 contractual workers of PT HRS Indonesia to permanent employees
    The wage minimum increases, according to KBLI and Governor of West Java Decree as amount IDR 4,632,985,-
  2. Referring of PT HRS Indonesia is one of NSK’s supplier, NSK Ltd, should take responsibility to help the workers gain their rights as refer to Guidelines of section 1.2. of NSK Supplier CSR Guidelines: https://www.nsk.com/sustainability/supplier/pdf/supplier_csr_guidelines_3rd_eng.pdf

“Do not discriminate on the basis of personal characteristics (principles, sex, social status, lineage, ethnicity, nationality, age, marital status, disabilities, etc.) protected by the law of countries and regions related to your business in any aspect of employment or treatment (including recruitment, hiring, promotion, compensation, access to training, job assignment, wages, benefits, discipline, termination and/or retirement, etc).” (Subsection 1.2.1 Non discrimination)

“Pay wages in compliance with the laws relation to minimum wages, overtime, wage deductions, performance-based pay, and other remuneration in the country or region where business is conducted. Provide benefits required by law.” (Subsection 1.2.6 Appropriate wages and benefits).

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