Haglofs AB, Complaint 758

CONCERNING LABOUR STANDARDS
There is no discrimination in employment Freedom of association and the right to collective bargaining
STATUS
Investigation
DATE
2019-07-15

This complaint follows complaint 712 concerning the establishment of the trade union Garteks in the factory.

Management invited Garteks to a meeting on 3 July 2019 to address the union's demand to be recognised by the factory. The meeting was concluded with a recognition of the new union.

The company will facilitate that two union officials will be free from work to do the union's work. Furthermore, factory management promised to provide a union office at another production location, about 2 Km from the production location where the trade union was established and where it has its members. According to the trade union, the company's argument is that this location is allocated to all unions.

The factory will give an Standard Operation Procedure (SOP) on Freedom of Association regarding membership recruitment. The company highlighted that the unions's working area is only at the production location and not the Industrial zone of which the production locations is part but which is owned by the same owner.

Regarding the automatic deduction for membership dues, this issue was not discussed in the meeting and the union has not received the membership dues from its members.

After the meeting, the union officials still experiences discrimination by the management.

On 6 July 2019, Tiurma Hutasima, the chiarwoman of PK FSB Garteks Pou Chen, a supervisor for Cutting department in Building 1 was called by Tika Feblia the Head of Department of Cutting, Embose, Sablon, computer sewing to meet her in th office where Chen Jing, Rubi and Erna were waiting there. In the office was discussed about manpower planning for production operator. Chen Jing explained that the Cutting department under Tiurma was over manpower of 13 peple and therefore it will be reduced by 8 people to learn computer sewing in Building 3. To replace the 8 people, they will send back some people to Tiurma so that Tiurma could train them on Cutting. Tiurma disagreed because at the time they were doing an important production process.

On 8 July 2019 in the morning, when Tiurma tried to organize who would be sent to building 3, Erna (Sablon Supervisor in Building 3), Ela (Cutting supervisor in Building 3) and Bainah (Press supervisor in Building 3) came to Building 1 and directly asking the operator they wanted. Tiurma refused because the operator they wanted were doing an important process and it will slow the process, and she planned to sent new people since they they will learn the new process too.

At the time, Chen Jing was arguing with Rita (a line supervisor under Tiurma) on taking people from Building 1. Rita refused to release the operators who are already mastered the process but she would give a new operator since afterall they would learn the new process in another building. Chen Jing directly asked to Jamilah, an operator, whether she wanted to move to Building 3. Jamilah said no. Jamilah refusal angried Chen Jing and responded with high tone to Erna saying ,"Erna tell Dian (Building Admistration) if the operator doesn’t want to be transferred to Building 3, put them on absence. If they are absence for 5 days then fired them!" Jamilah was scared. Rita who supervised Jamilah she didn’t want to send her to Building 3 because she was working on an important machine. Rita recommended a new person since in another building she would learn a new process. Chen Jing was angry and ordered the Supervisors from Building 3 to take 8 people they wanted without listening to the Supervisors in Building 1.

At 3pm, 4 operators who refused to be transferred were called by Wahyu (CR/HRD). One of the operators, Edwin said that he wanted to work in comfort but he was surprised to be moved suddenly without any notice. Wahyu responded to Edwin saying that " you are wrong, sir. Working is to earn money. Comfort is for yourself. You are wrong. There is no work that comfort. Edwin replied back that it would be better if he knew it before but that's not the case. We are confused.

On 9 July 2019, Tiurma was called by Arti the Production Manager to his office. In the room was waiting Etika Feblia (the Departmen head), Chen Jing (expatriat for Building 1 and 3), Ishak (HRD), Jilian Hsiao (HR Manager), Wahyu (HR), Sri (IE), Hera (translator). Arti ordered Tiurma to transferred 32 people to Buidling 3 and he said that at 3.20pm all the workers should be in the office in Building 3. Tiurma fullfilled his order and gathered 32 people and handed them to Etika Feblia.

On 10 July 2019, all the operator gathered in front of office in Building 3 and were briefed by Etika Feblia. She spoke with high tone angry at the workers, "Didn’t you hear yesterday what time to be here? Didn’t you hear? You think if you have been working here for a long time you are great? I have been waiting here but only 9 people showed up. You just started walking at 7 past 2 minutes. If you think you are great, don’t be a factory worker, be a manager, open your own factory.

After 32 people were taken from Building 1 to Building Building 3, the production process in Building 1 that produces brand Asics could not meet the production target.

This situation is seen by the union as an act of discrimimnation. This situation, according to the union, has caused:
1. the company has caused discomfort at work for workers
2. the company has practiced a poor communication that impacts the people in Building 1
3. the company didn’t respect and take into account input from others and imposed their want to others.

Findings and conclusions

On 22 May 2019, FWF’s complaints handler in Indonesia received a complaint from trade union Garteks Garteks is a new-established union in the company. They claimed that the company has not respected freedom of association. FWF declared this complaint admissible and informed Haglofs, the FWF member sourcing at this factory. Haglofs reached out to factory management, who disagree on the Garteks registration name of Federasi (Federation level) instead of a factory level trade union. Factory management revealed that they will accept the workers resignation after confirmation of SPN. SPN is the “old” trade union that has been active for more than 10 years in the factory. The FWF Complaints handler reached out to Garteks and SPN to confirm their stories. Unfortunately, no response from SPN was received. SPN had dropped the case to the court against Garteks. Based on the documentation that was sent, FWF can conclude that the registration by the government confirms the establishment of a factory level union PK FSB Garteks meaning a plant level trade union. Therefore, there are no procedural obstacles for Garteks to be established in the factory. The factory does not have to wait for the confirmation of SPN for the resignation of the workers. Haglofs needs to ensure that factory management refrains from any interference in Garteks’ efforts to establish a trade union. Management should cease all efforts that would directly or indirectly favour or promote a specific trade union. On the 2nd of July 2019, Garteks was invited by factory management for a meeting. Garteks is now recognized as a union at the factory. The company is giving them facilities they asked as a union and will follow up on the salary deduction for the union membership dues. FWF recommends the brand to monitor the process of implementation, including guaranteeing the rights that are described in the Freedom of Association Protocol. Court decision was announced on 22 October 2019. Decision number 29/G/2019/PTUN-SRG said that the allegation from SPN cannot be accepted. SPN is going for an appeal. FWF’s complaints handler contacted the complainant how confirmed that she has received the room. This complaint is closed.

Overview of the complaint investigation

2019-07-25 Investigation

Art 5, sub 2 a and b:
Suppliers are obliged to provide a space or room that is appropriate, hygienic and strategic within the company premises to be used as a union secretariat together with furnishings to support the union’s activities, including two sets of desks and desk chairs, filing cabinets or cupboards and a table and chairs for guests.
b. In the case that the company is limited in its ability to provide for the above facilities and fittings, then the company is obligated to make a refurbishment plan with the union’s agreement within a timeframe of 6 months.

Art 5 sub 1 g and h
g.
The company must assist in deducting union fees from the wages of union members every month and within a period of time jointly agreed upon or at the latest within 10 work days the amount must be given to the relevant union leader depending on the administration processes within the company.
h.
age deductions as intended in subsection (g) are to be implemented upon receipt of a letter of authorisation from the union member. The letter of authorisation does not need to be officially stamped.