"Collective Bargaining Agreeement"
Peduli Hak: CARING FOR RIGHTS a project of An intensive research, evaluation and remediation initiative in two Indonesian factories manufacturing Reebok footwear. Insan Hitawasana Sejahtera social science research & consultancy Jakarta, Indonesia October 1999 Glossary ACILS American Center for International Labor Solidarity, a labor rights organization with offices outside the United States, including Jakarta, affiliated with the U.S.-based trade union, the AFL-CIO ANSI American National Standards Institute, a nonprofit private sector organization which administers voluntary consensus standards developed jointly by government and industry BAPPENAS Badan Perencanaan Pembangunan Nasional, the Indonesian National Development Planning Board CPR Cardiopulmonary resuscitation dB Decibel, the standard measurement of sound DJI PT Dong Joe Indonesia, an Indonesian manufacturer that produces Reebok athletic footwear ERM Environmental Resources Management is a global consulting firm that advises on environment and natural resource related issues Footcandle A unit of light equivalent to the illumination of one candle at a distance of one foot HIPERKES Higiene Perusahaan Kesehatan dan Keselamatan Kerja, the Indonesian government's workplace health and safety agency IHS Insan Hitawasana Sejahtera, a Jakarta, Indonesia-based social science research and consultancy firm Jamsostek The social security program for formal sector workers managed by the government of Indonesia KKB Kesepakatan Kerja Bersama, the Indonesian term for collective bargaining agreements between factory management and workers Koperasi Indonesian for cooperative. In this report, used to describe worker-managed cooperative stores that offer reduced price goods LBH-APIK Lembaga Bantuan Hukum-Asosiasi Perempuan Indonesia untuk Keadilan, an Indonesian non-governmental organization that promotes the human rights of women Lux A unit of light equivalent to .0929 footcandle MSDS Material Data Safety Sheet contains important information about a chemical, including its ingredient list, potential health hazards, necessary handling precautions, and instructions for dealing with accidental overexposure, spills, and fires NIOSH National Institute of Occupational Safety and Health, a U.S. government agency that is responsible for conducting research and making recommendations for the prevention of work-related illnesses and injuries NRR Noise Reduction Rating, a rating of how many decibels of protection are provided with proper use of hearing protection such as ear plugs or ear muffs OSHA Occupational Safety and Health Administration, the U.S. government agency that creates and enforces workplace health and safety regulations in the U.S. Papan Indonesian for announcement boards (i.e., bulletin boards) pengumuman Peduli Hak Indonesian phrase that means "caring for rights" Pelecehan seksual Indonesian for sexual harassment PPE Personal protective equipment, which includes items such as gloves, masks, eyewear, face shields, special clothing, and other items designed to shield the body from a potential hazard Ramadhan The Islamic holy month during which Muslims fast from dawn to sunset Reformasi The popular movement pressing for social, political and economic reform that started prior to the resignation of President Soeharto Rp Rupiah, the Indonesian currency SP-TSK Serikat Pekerja Tekstil Sandang dan Kulit, the Indonesian Trade Union for Textiles, Garments, and Leather Workers SPSI Serikat Pekerja Seluruh Indonesia, the only labor union recognized during the Soeharto regime, currently in a process of transformation Soeharto The President of Indonesia from 1965 to 1998 TYI PT Tong Yang Indonesia, an Indonesian manufacturer that produces Reebok athletic footwear UV light Ultraviolet light 1. Observations This section outlines some general observations that emerged from the evaluation. These are designed to provide a broad overview of conclusions that IHS felt were particularly relevant or important. Detailed findings and remediation can be found in Section Five (page 15-29). 1. Greater worker communication and understanding is at the heart of many solutions to the workplace problems identified. The research team concluded that the major "social problem" in the case of these two factories had less to do with willful violations of workers' rights than with problems of communication and transparency between the factory management and its workers. Workers were given complex forms and other documentation that they simply did not understand; this was further complicated by the fact that management seemed to assume that no clarification was needed. This situation led to a number of specific recommendations on how to improve communication between management and workers, with factory management taking steps to help workers understand their rights and responsibilities. Both management and workers are learning to value humane working conditions. This not only includes creating a healthier and safer working environment but also includes efforts to improve patterns of interpersonal communication between management and workers, which IHS considers to be equally important. 2. Transparency accelerates the process of change. Transparency—meaning clarity of policies and procedures, and the active involvement of workers in deciding on the most appropriate methods to protect their rights and to create a more humane working environment—is a key aspect of ensuring that the Reebok Standards can be implemented and that they can be institutionalized in the longer run. 3. A multi-disciplinary, time-intensive approach illuminates the issues. The three-pronged evaluation approach (see Project Methodology) of (1) general worker surveys, (2) in-depth worker interviews, and (3) observation proved to be an extremely useful one. In particular, content overlap between these different sources provided a degree of reinforcement to many of the findings that otherwise would not have been reached. 4. There is a definite correlation between good human rights conditions and good general management practices. This can result in greater efficiency. Good management practices lead to fewer labor problems, lower rates of turnover in the workplace, and shorter workweeks (with decreased failure rates in meeting production targets). Factory managers that blindly implement human rights programs from Reebok, without first evaluating them with the assistance of their workers, risk experiencing difficulties institutionalizing positive changes. 5. Suppliers have a role to play in improving conditions. Suppliers, the many vendors who provide raw materials to factories, can play a role in factory compliance with occupational health and safety standards by creating safer products and handling methods. For example, suppliers could be asked to make resealable chemical containers that would have openings, such as a corner opening, to allow all contents to be drained thoroughly. Reebok may be justified in making this request of its suppliers based on the amount of business it conducts with them. The manufacture of proper protective gloves that fit Indonesian hands is another example of how a supplier can play a role in improving workplace conditions. A supplier should be identified that can manufacture protective gloves to fit the various sizes of workers' hands. 6. Many important improvements to workplace conditions do not have to cost factories a large amount of money. Since this initiative identifies the strong need for better communication and education for workers as a solution to many problems, it is worth noting that such communication and education need not cost a lot of money. Of course, infrastructure improvements that may be necessary are often expensive. In meeting the needs of this evaluation, Reebok and factory management told IHS that hundreds of thousands of dollars were spent during the remediation period to improve or replace smokestacks and ventilation systems. In spite of these infrastructure improvements it should be noted that many improvements believed to be just as critical, such as better education and training programs, are not prohibitively expensive and may even pay for themselves through improved productivity or fewer accidents and injuries. 7. A "new culture" in approaching workers to participate in change seems to be developing in these factories. This bodes well for the future of the industry and of the workforce. Factory management is enthusiastic about participating in a culture of learning and change. This need and desire for this new culture has been established but must be carefully nurtured and guided if it is to be sustainable. Already, creative problem-solving is surfacing in this environment where rote learning has traditionally been the standard practice. Many of the in-house solutions generated in response to IHS findings have been extremely ingenious, such as designing and implementing new saw guards and ergonomic chairs. While there are still many issues to address, the recent experiences like these coupled with a "can-do" mind set will encourage staff to continue finding creative solutions for their workforce and workplace environment. In the meantime, Reebok, as well as other similar transnational companies operating in Indonesia, has an important role to play in further stimulating and sustaining these initial buds as they start to bloom. 8. These improvement efforts are particularly noteworthy and valuable at a time when workers are facing hardships that result from difficult economic and political conditions. In Indonesia, concerns about human rights and conditions in the workplace have been heightened by the continuing economic and political turmoil in the country. While the economic crisis that started in the middle of 1997 resulted in job losses and generally greater job insecurity, the changed political climate and a spirit of reform (reformasi) may have started to penetrate the workplace influencing both management and staff. In short, the current climate is one where individuals and companies are gaining greater awareness of democratic and human rights issues. 9. The remediation process confirmed the seriousness with which both factory management and Reebok approached questions of human rights and working conditions. The cynical view that transnational companies pay lip service to social responsibility was not corroborated by IHS experiences with either Reebok or the management of the two factories involved in this human rights evaluation. In the view of the research team, management responses went beyond minimum requirements with a positive attitude and a commitment to make lasting improvements. They installed new equipment such as waste burning facilities, provided foot rests, replaced hundreds of chairs, introduced more appropriate protective equipment including gloves, masks, eye-protection, earmuffs, arm protection, additional toilets, and more. The factories' improved communication with workers ensured, through its training efforts, that workers understand their conditions of employment and their basic rights in the workplace. 10. Human rights are not to be monitored once in a while, but should be an ongoing part of doing business. It is critical that progress made is not allowed to lapse. The creation of established factory procedures would in many instances provide an ongoing process for informing and protecting workers. For example, factory management ought to create formal links between the clinic staff and the factory worker monitors, the result of which would be an occupational health and safety management system. Such a system could result in reduced down time, higher productivity, fewer accidents, and increased participation in safety prevention. 11. A "Human Rights Compliance Index" based on a number of measurable indicators could provide incentives for factories and assurances for consumers. Internal assessment, periodically checked through independent monitoring, could be used to measure improvement against a common set of objectives, but with an ability to reflect differing national conditions and stages of human rights development. Incentives could be strengthened if Human Rights Compliance Index achievement levels were associated with rankings that companies could use to obtain recognition or accreditation in the international marketplace. 12. Child labor, prison labor, and other forced labor are not problems in these factories. Although these issues have received most attention in the media, they are simply not factors in this case. These factories employ adult workers who have an active interest in advancing their employment skills and increasing their understanding of their rights in the workplace. 13. Workers in these factories are not paid less than the minimum wage, as is commonly believed. This study confirmed that base pay for workers in these Reebok-producing footwear factories is currently 24.3% above the current minimum wage. In addition to base pay, there is cash and in-kind compensation in the form of meals, transportation allowances, and attendance bonuses that increase the total compensation package for a 40-hour workweek to nearly 43% above the current government minimum wage. 14. Violations of factory codes do not represent intentional disregard for rules and regulations. According to this evaluation, most of the problems found in these two factories did not result from intentional exploitative practices, but rather from a lack of information for workers, from inconsistent enforcement of factory policies, or from lack of technical expertise. This perhaps helps explain why IHS was able to achieve a high level of cooperation not only from Reebok, but also from the factories themselves and why, in the opinion of the evaluation team, remediation efforts have been able to lead to significant improvements even in the short time- frame allotted. 2. Project Design Insan Hitawasana Sejahtera (IHS) was retained by Reebok in May 1998 to perform research services in factories making Reebok athletic footwear in Indonesia. The project required that IHS do the following: 1. Independently evaluate two factories, which together represent approximately two-thirds of Reebok footwear production in Indonesia. The evaluation was to be carried out according to the standards set by Indonesian legal requirements and by the Reebok Human Rights Production Standards (hereafter called the Reebok Standards) and accompanying Reebok explanatory guide. Note: The research did not include an assessment of electrical safety beyond basic housekeeping requirements that are included in the Reebok Standards. 2. Identify areas of factory non-compliance and document initial findings in a report for Reebok and the factories concerned. 3. Give factory management the opportunity to implement a plan of action to correct identified problems. 4. Conduct a follow-up evaluation to determine the progress of factory corrective actions. Allowance was to be made for long-term implementation of those measures that addressed issues too complex for effective short-term remediation. 5. Prepare a report that assessed the effectiveness of the remediation programs, evaluated progress made on long-term problems, and stated any further recommendations. 6. Share the results with non-governmental organizations, for-profit businesses, and others interested in labor rights and human rights of factory workers. Peduli Hak was designed to demonstrate problem-solving through three distinct project stages: • IHS initial findings would identify all factory problems • Factories would take action to correct problems (with technical assistance from Reebok) • Follow-up evaluation by IHS would critique progress of factory actions. Using this model, the dynamic process of resolving problems could be shared easily with other athletic footwear factories in Indonesia and around the world, an important goal of the project. The chart, "Details of Findings" on pages 15-29, records the results of each of the three project phases. Not every problem had an easy solution, and in fact, not every problem has been fully addressed to date. Continuous improvement, innovation, and more time are needed. Reebok's commitment to a more humane working environment was made clear through their demand for a truly independent evaluation. From the outset, the project was created under the principle of transparency. The project team was given access to the facility, records, and workers at all levels of the organization. Reebok agreed in advance that the findings of the project would be shared. The project was created with a focus on the workers' vantage point. Sampling techniques created a statistical basis for workers' responses, which could be confirmed and cross-referenced through in-depth interviews (see Project Methodology). The result provided a view of the workplace as the workers themselves see it. As was demonstrated in several circumstances (particularly with issues of promotion and gender equity), an in-depth understanding of social dynamics must be combined with improved systems and better communication to achieve positive change. The project was indeed time consuming, requiring over 1,400 hours of IHS staff time. The significant human resources dedicated to the project lies at the heart of Peduli Hak's uniqueness and, we hope, its value as well. 3. Project Methodology To implement the project, IHS assembled a team of specialists in the areas of research, labor relations, and occupational health and safety (see Appendix A) and developed a work program geared to providing a comprehensive evaluation of factory compliance with the Reebok Standards and Indonesian legal requirements. Key elements of this work program included: • Discussions with Reebok and factory management on the structure and nature of factory operations and on internal rules and procedures regarding workers' rights, responsibilities, and health and safety. • Independent review of written documentation from factories including contracts and payment schedules, personnel rules, and safety procedures. • Structured interviews using a formal worker survey (see Appendix C) administered to a representative sample of approximately 5% of the total number of workers. The survey was a time-consuming, yet critical element of the research. It provided a statistical basis for identifying human rights and related problems across a range of factory production activities. The survey instrument was designed to cover a wide range of information relevant to the Reebok Standards. This included background characteristics of each respondent such as work experience at the factory, hours worked and overtime, amounts of remuneration (basic salary and supplementary income), leave experience, trade union membership and activities, as well as their perceptions of general human rights conditions and the working environment. The survey was conducted with production and non-production workers in both factories. A limited number of supervisory personnel were also included. Respondents were stratified by production department (type of work) and by gender, in order to detect differences in responses among various locations in the factory and between male and female workers. • In-depth interviews with production workers, managers, and labor union staff randomly selected by IHS to obtain more detailed information on their perceptions of working conditions and, where relevant, human rights related activities. • Direct observation of working procedures and the working environment. Team members, particularly the labor relations and occupational health and safety experts, spent time in each factory examining factory facilities and conditions. • Measurement of airborne chemical exposure by the occupational health and safety expert using organic vapor monitors (3M 3520). When Indonesian regulation did not adequately provide guidance on worker safety issues, Australian workplace standards, which are largely equivalent to U.S. workplace standards, were consulted. In general, the three-pronged approach of 1) worker survey, 2) in-depth worker interview, and 3) observation proved to be an extremely useful one. In particular, content overlap between these different sources provided a degree of reinforcement to many of the conclusions that otherwise would not have been drawn. The survey was particularly important in this regard. Although it was by far the most difficult part of the work to implement, the survey was the only source that provided a truly quantitative basis for judging the significance of some of the problems and issues uncovered. 4. Project Timeline and Resource Allocation Action Taken Date(s) IHS Resources Allocated General preparations: visits to May - June 1998 172 IHS work hours factories, collection of documentation, design of worker survey instruments Initial evaluation of factories August - October 1998 860 IHS work hours Collection and processing of worker survey data, factory observation, in-depth worker interviews Occupational health and safety August - October 1998 129 IHS work hours work, including air quality testing Drafting of report on initial November - December 1998 129 IHS work hours findings Initial findings reported to December 1998 factories and Reebok Factories take action during January - April 1999 remediation period Follow-up evaluation of factories, May 1999 86 IHS work hours including re-testing air quality Drafting of final report June - July 1999 86 IHS work hours Submission of final report to August 1999 factories & Reebok Total IHS work hours: 1,462 5.1 Effective communication of policies Almost all workers had at least a junior high Management at both factories communicated Confirmed school education: 98% at DJI and 94% at TYI. information to workers about their entitlements Most had a high school education: 76% at DJI and benefits. The payslip at DJI could be further modified. DJI and 68% at TYI. Yet, workers reported that their may want to study the TYI design. reading skills had declined since school, and * They simplified written information, such as they were unable to read complicated documents. contracts, and provided information orally in Thus, most workers were functionally illiterate, workplace training sessions. which prevented them from reading and understanding their collective bargaining * They modified wage statements and provided agreement (KKB, or Kesepakatan Kerja training to explain overtime payments, taxes, and Bersama ) and their individual contracts. Many insurance. were generally unaware of their job entitlements and benefits. * Information kits were posted throughout the It was not sufficient that factory management factory, such as in cafeterias and other frequently distributed documents to workers; it needed to trafficked areas, for easy reference by workers. explain entitlements and benefits to workers. Information kits contain items such as: the collective bargaining agreement (KKB); a * Workers did not understand their own wage prototype worker contract; how to calculate statements. The allowances, deductions, and overtime wages (using a method recommended calculations were not detailed. Many did not by IHS); how to use insurance benefits provided understand the amount of tax deductions taken, by Jamsostek, the government’s social security or how to calculate overtime wage rates. The agency; other workplace policies and procedures. situation is complicated by the fact that government rules about overtime pay are * Jamsostek officials conducted training sessions difficult to understand and change frequently. at both factories, reaching hundreds of workers. Factory management will conduct all trainings going forward. * The collective bargaining agreeement was dense and difficult to understand. * Benefits under Jamsostek, the government’s social security and health care system, had not been adequately explained; not all workers knew how to use program benefits. While workers knew they had annual leave To better communicate leave benefits, both Both factories should explain annual leave benefits, some thought that major holidays factories implemented a system of individual eligibility on forms, showing the number of days counted against their individual leave, which leave forms that specify the number of entitled and the number of days taken. Factory was not true. There were other types of leave days per each type of leave and have space closure during the end of Ramadhan festivities available as well, but some workers were for supervisors to grant or refuse leave count as part of the workers’ annual leave and this unaware of them. Both factories needed to (reason for refusal must be stated). should be clearly explained in contracts and on explain to all workers the following: leave cards. * Annual leave is different from national holidays * Miscarriage leave is six weeks * Maternity leave is three months Workers may not have requested some types of leave to which they were entitled, due to lack of information. Interviews with workers revealed a general Promotion criteria and process are now written Confirmed lack of understanding regarding how or why in terms easily understandable to workers and promotions were decided. Many believed that are included in the information kits accessible "like and dislike" were the reasons for throughout each factory. promotions.There were no written and transparent guidelines that explained the basis for deciding promotions. Such guidelines ought to be written and made available to workers. 5.2 The right to freedom of association Unions in both factories were learning how to Union representatives and line workers (4-5 from Confirmed operate independently of the government in the each factory) attended a training by the American post-Soeharto era. There was only one union Center for International Labor Solidarity (ACILS) in recognized by the previous government, the November, 1998. ACILS is the overseas branch of Serikat Pekerja Seluruh Indonesia, or SPSI. the AFL-CIO. Reebok facilitated worker The SPSI represented 95% of the workers participation by ensuring that workers were given at DJI and 94% of the workers at TYI. Seventy time off without penalty. The training included percent of workers surveyed thought that they Indonesian labor laws and international covenants received positive benefits from membership, signed by Indonesia. although they did not necessarily know the specific benefits. Only 23% at DJI and 2% at In April, 1999, ACILS conducted tutorials with TYI had ever attended a union meeting. union representatives to review the provisions of each factory’s collective bargaining agreement. To improve the ability of these unions to serve workers’ interests, it was recommended that Also in April, 1999, the Trade Union for Textiles, union representatives know at Garments and Leather (Serikat Pekerja Tekstil least the following: Sandang dan Kulit , or SP-TSK) provided voter * how to find information on company education trainings to the factories. More trainings policies and procedures are scheduled for the future and will include topics * how to explain the collective bargaining such as negotiation, union finance and agreement to workers administration, and shop steward systems. * how to resolve workers’ problems * how to conduct effective negotiation with management rather than use worker demonstrations as a first resort. 5.3 Gender equity Women made up 84% of the workforce at Factories adopted policies which provide Both factories should provide gender training for DJI and 81% of the workforce at TYI, yet they equal opportunity for women and men to workers and management. In this training, include comprised only 40% and 60% of line leaders rise to positions of leadership. This policy discussions on all gender-related issues such as at DJI and TYI respectively, and 28% and was presented in trainings and included in the sexual harassment in the workplace, 33% of supervisors. Clearly, it appeared to be information kits mentioned above. discrimination in promotion, negative stereotypes, more difficult for women than men to attain etc. line leader and supervisory positions. In addition, gender equity will be sought in the selection of future instructors during factory- Managers continue to make judgments based on A portion of the problem was socio/cultural in wide health and safety trainings later in 1999. gender stereotypes. At DJI, managers expressed nature; anecdotal evidence suggested Currently, factory floor monitors are in charge thoughts such as: female leaders/supervisors are that a few women turned down promotion of overseeing safety practices. Each factory more frequently absent for family reasons, and opportunities because they were not willing to has 5 factory floor monitors, of which TYI female leaders/ supervisors cannot be firm. be elevated to higher positions over workers has 3 female monitors and DJI has 2 female of greater seniority. However, the imbalance monitors. These factory floor monitors have Confirmed: factory floor monitors of gender between workers and supervisors responsibility for, among other tasks, ensuring could be rectified with proactive measures, that workers use personal protective equipment. including greater communication and education. During recent fire drills, women have been An example of how gender imbalance affected selected at random to discharge fire operations was the fact that although women extinguishers. Many have already participated made up the vast majority of the workforce, and, throughout the coming year, almost all almost no women had been trained in the use women will learn to use them. of fire extinguishers. Only men were trained in this, although extinguishers are light enough to be easily handled by everyone. In interviews, no workers knew of any sexual LBH-APIK, Lembaga Bantuan Hukum-Asosiasi Confirmed harassment incidents. In fact, many did not Perempuan Indonesia untuk Keadilan , is a understand the term for it, "pelecehan seksual ." nongovernmental organization that promotes Even after the concept was explained, they the human rights of women. They have been claimed they had never witnessed or heard of it. identified to conduct trainings on gender Union representatives at the factories were also awareness. Training will be delivered to unfamiliar with the term and the concept. workers in 1999. If fhe concept were introduced and workers made aware of it, they would understand what it is and how to deal with it; some issues may then surface. 5.4 Wages Since Indonesia’s economic crisis, rapid Factories raised wages so that, beginning April Confirmed fluctuations in wages and prices made for an 1999, both factories’ compensation substantially unpredictable climate, one in which the met or exceeded the government’s determination cost of living outpaced wage levels. Thus, of a minimum living wage, which averaged Rp. even though the workers at DJI and TYI were 330,000 per month for the region. paid substantially more than the government’s minimum wage, they still experienced financial On April 1, 1999, the government raised the difficulties.The government raised the minimum minimum wage to Rp. 230,000 per month. DJI wage in August 1998 to Rp. 198,500 per and TYI raised their base wages to Rp. 286,000, month, and the factories paid a minimum wage or 24% above the new minimum wage. In addition of Rp. 238,000 per month plus meals, bonuses, to base pay, workers receive cash and in-kind and allowances. It was recommended that, for compensation in the form of meals, transportation the well-being of their workers, the factories allowances, and attendance bonuses (available to attempt to pay the government’s "minimum all workers regardless of skill or length of service), living wage" a higher wage based on the cost thereby increasing the total compensation of living, which was set at Rp. 251,912 per package to nearly 43% above the new minimum month for West Java (area 1) in early 1998. wage. All workers receive a base compensation package with a minimum value of Rp. 330,000 per month. Wages paid for overtime work, if any, are in addition to base wages and other compensation described above. Reebok will continue to periodically review the wage situation in light of changing local economic conditions. Workers did not have documentation of their At DJI, time cards are available at all times for Confirmed regular and overtime hours worked, which workers to examine and photocopy. increased the possibility of workers being shortchanged. All workers should be provided At TYI, a new time-tracking system was copies of their time cards or sheets. developed wherein supervisors record working hours and workers countersign to verify that recorded hours are correct. Time sheets are kept in each department and are available to workers for review and photocopying. 5.5 Overtime hours When examining overtime practices, two * All Reebok footwear factories had There was still confusion about working hours at standards were considered. First, previously been given written notice that DJI. We observed that workers began working as Indonesian law requires a normal workweek exceeding of the 60-hour maximum would be soon as the doors opened, both in the morning of 40 hours, with up to 14 hours of overtime regarded as a severe violation of the Reebok and after lunch. This might happen 15 minutes permitted, for a total of 54 hours per week. Standards. In December 1998, footwear prior to the actual shift, yet this extra time was not Employers have the option to apply for a orders were reduced at both DJI and TYI recorded on workers’ time sheets. The sheets government exemption which allows them as penalty for violating the standard. reflected only the official start time for the shift. to exceed the 54-hour workweek. The second Workers should be paid for this extra time if they standard applied was that of the Reebok are working. Human Rights Production Standards, which * On February 15, 1999, Reebok sent a limits the workweek to a maximum of 60 hours. memorandum to all footwear factories in Asia announcing severe penalties (i.e., significant reduction of orders) for intentional inaccuracies in During the period studied, approximately 20% reporting working hours to Reebok or for making of the workers worked in excess of a 40-hour payments to workers outside of payroll. "Off-the- week. Of that number, the majority were within clock" work would not be permitted. government overtime regulations, but 20% exceeded the 54-hour week. In TYI’s case, an * DJI obtained government permission to extend official exemption allowed this; however, DJI working hours up to 60 hours per week, if did not have official permission. Without such necessary. Workers may, of course, refuse permission, exceeding a 54-hour workweek is overtime work. illegal. Of the workers surveyed, 3% at DJI and 8% at TYI had exceeded the Reebok Standard of a 60-hour maximum workweek. A few workers at both sites reported that in periods of heavy work, they may work off-the-clock and receive pay that is not indicated on pay slips. While both factories have policies regarding the Both factories communicated policies for workers Confirmed right to refuse overtime work, approximately 25% refusing overtime in the information kits stationed of workers interviewed in each factory thought throughout the factory and on announcement that overtime work was obligatory. A slightly boards. The list of acceptable reasons for refusal lower percentage reported that they would fall includes: illness, family problems or special into disfavor for refusing overtime work. celebration, pregnancy, or "other acceptable reasons". All future worker orientations will include discussions on how to refuse overtime work. 5.6 Proper employment status As is common practice in Indonesia, factory The classification of "daily" workers was Even though the "daily" worker category has been workers were classified differently from office eliminated in both factories, and all workers are eliminated in both factories, production workers do workers. Factory workers were called considered "permanent workers". not receive pay for days missed because of illness "permanent daily workers", a category which unless their illness is confirmed by the factory implied fewer rights and benefits than salaried clinic. Office workers do not need such office staff, who were called "permanent workers". confirmation. Any doctor’s letter should be A factory worker with several years’ tenure might accepted and the factories should use better thus have lower status than a new office worker. incentives to discourage misuse of sick leave. Although DJI and TYI had already ensured a near-equal level of benefits for all workers and office staff, they were also encouraged to give factory workers the same status as those in the office. Thus, factory workers should be reclassified as "permanent workers". DJI had a higher workforce turnover rate than Turnover rate was not covered in the Reebok We suggest that DJI try to reduce turnover, and TYI. One-third of the workers at DJI had worked Standards. one way to do so might be job rotation among there for one year or less, while only 4% of departments to reduce boredom among workers. those at TYI had worked there one year or less. Some job rotation has already begun, and it should be continued. As an additional benefit, this policy would guarantee the availability of a pool of workers able to switch jobs easily without losing significant levels of productivity, a problem often faced in the development department when new designs arrive. 5.7 HEALTH & SAFETY ISSUES 5.7.1 Safety Procedures and Safety Management Factories needed to implement workplace A new strategy of prevention programs will be DJI was searching for resources to assist with health and safety programs that focus on undertaken to protect health and safety. For audiometric screening program. IHS suggested prevention. For example, some cutters example, cutters now wear arm protection to the physician in charge of occupational health at complained of skin rashes and created their prevent rashes. The factories will partner to find the Ministry of Health. own makeshift arm protectors. Staff in the solutions to issues they have in common, such factories’ clinics should have reviewed allergy as addressing the need for hearing conservation The physician at TYI has undertaken to conduct problems to determine causes and to find ways and the causes of allergic reactions. surveys of allergies. We discussed the difficulties to eliminate those causes. in reaching conclusions. For example, an At DJI, all workers required to use hearing ostensible allergy to leather could in fact be a Factories did not have dedicated health and protection will receive hearing tests once a year reaction to the dye or tanning chemicals. Without safety departments. Thus it was recommended at a hospital to evaluate effectiveness of the precise, process-related specifications, it is that the clinic staff and the factory floor hearing conservation program. This pilot project difficult to locate the actual allergen. However, the monitors work together and establish formal will be replicated at other footwear factories. survey will help locate materials that are prone to management links to ensure that safety cause allergic reaction (such as PVC and latex). management and planning is taking place. At TYI, the factory physician was assigned to oversee occupational health and safety The exchange of workers, information, and programs. He is developing a simple research research is particularly heartening and can program to assess the prevalence of allergies, only assist workplace improvements. rashes and other skin ailments, identify where the ailments most commonly occur and what materials are involved, and find suitable substitutes, in an effort to eliminate the causes and prevent ailments. This pilot project will be replicated at other footwear factories. There is increasing evidence that long-term Factories reduced exposure in three ways: Confirmed exposure to ultraviolet A/B/C and blue light (also * Lights were physically lowered to hang below The UV light which is used is between 315-400 known as "black light") can harm the eyes. This eye level to reduce direct exposure nanometers, and has been linked to cataract means that exposure to the flourescent lighting * Factories identified local suppliers of protective formation. Workers required to take medication used on some production lines in both factories eye wear; workers on the ultraviolet (or UV) lines should be cautioned. may have harmful consequences. Exposure are now using polycarbonate glasses that block may also cause skin damage to people who are more than 99% of UV rays (0-400 nanometers) Workers tried glasses and the feedback is that taking antibiotics. * Signs have been placed on UV lines they are acceptable. Two varieties were tried to announcing that workers on antibiotics must shift determine the most appropriate to Asian facial temporarily to other positions configuration. Factory management and workers’ Accident reports and accident investigation Confirmed representatives were not as aware as they forms are kept in the front office, clinic, and should be of serious accident or illness patterns. union office of both factories. While factory clinics maintained records of illness and injury, a separate "serious injury log" TYI has a physician responsible for investigating was not maintained in offices or by union all accidents involving lost work days. DJI has a representatives. designated staff person responsible for investigating accidents. Very few accidents were investigated, which unfortunately misses an opportunity to learn about safety system failure, training or educational needs, or the effect of relevant physical and psychological factors in the working environment. Two types of noise were observed in the HIPERKES, the Indonesian government’s Confirmed factories: hazardous noise, defined as workplace health and safety agency, conducted Hearing protection available at all points where it continuous exposure to 85 or more decibels a noise survey of one factory at Reebok’s is required. Very good adherence to the use of (dB) for eight hours; and nuisance noise, which request and confirmed which areas experienced personal protective equipment (PPE) in both is below 85 dB and not generally regarded as excessive noise levels. An industrial hygienist factories. hazardous. Although nuisance noise is not conducted spot-checks and verified HIPERKES damaging, it can affect blood pressure and results. Several measures were taken to reduce stress levels. Factories addressed the issue of worker exposure to noise: required use of ear hazardous noise exposure by requiring hearing muffs with a sufficient noise reduction rating; protection for workers. regular checking to ensure that workers exposed to 85 dB wear ear protection; repair and replacement of muffs using manufacturer’s parts; While workers in dangerously noisy areas are and preventative maintenance of machines. required to use hearing protection, those working nearby may experience nuisance noise In addition, annual hearing tests will be required from "leaking" into their areas. Noise exposure for workers using hearing protection to monitor the ought to be reduced by adding dampening effectiveness of their protective equipment. materials to machines, conducting regular maintenance, and rotating workers to jobs in Both factories developed job rotation plans and quieter areas. have begun to implement them. Many staff and workers are not yet comfortable with widespread rotation, since in the past job rotation was associated with poor performance and hence undesirable, so this process will require explanation to workers. Reebok will monitor ongoing implementation of job rotation. Education and training in occupational health Factories addressed this issue in the short term Training is a high priority and preference and and safety are lacking in both facilities, indeed by giving special trainings on the use of personal should be provided by firms or individuals that use in Indonesia in general. As a consequence, use protective equipment (see the section below on adult learning techniques. of personal protective equipment is sporadic, personal protective equipment). While there are in existence ready-made training either because workers do not understand its courses for safety officers, it is best to tailor purpose or it is uncomfortable or unfashionable. To address this issue in a permanent manner, material to present needs. Workers do not know the potential seriousness Reebok is in the process of enlisting of hazards, including their long-term effects. For Environmental Resources Management (ERM), a example, the effects of noise on hearing are not global consulting firm which advises on immediate, so workers may not conscientiously environment and resource related issues, to use ear muffs. develop and deliver comprehensive health and (see next page) Workers lack a basic understanding of terms (con’t) like "hazard" and "risk," indicating a need for safety training for workers. Once this training is basic education. Workers should be delivered, a diverse group of factory personnel empowered to participate actively in promoting which will reflect gender equity will receive a workplace health and safety. special training: "training of trainers" instruction, to ensure adequate ongoing training in factories. This training program will be extended to all Reebok footwear factories in Asia. Floor monitors at both factories will receive training in human rights and health and safety issues. Welding cylinders were seen standing upright Factories built special trolleys to transport Confirmed without supports. This presents a serious welding cylinders. All cylinders are currently hazard, should they be knocked over. All secured to trolleys, tied to walls, or stored welding cylinders must be tied in special bays upright in cages at all times. and moved in a secure fashion on trolleys to prevent accidental fall. Elevator doors were able to open when elevator Both factories installed safety devices on Confirmed car was not present. A security device should elevators to prevent doors from opening unless disable the doors until the car is at a given floor. the elevator car is present. Hot press workers and roll mill workers perform Signs reminding pressing workers to drink water Confirmed arduous tasks and run the risk of dehydration often have been posted. At TYI, factory installed and fatigue. They must have regular hydration back massage machines in the pressing and rest breaks. department and posted a sign stating that workers may use them whenever they desire. 5.7.2 Ergonomics 69 workers were surveyed about their physical Ergonomics is not a well-known concept in Confirmed comfort; the majority reported experiencing Indonesia in general, but factory management back pain, muscle fatigue, or chronic discomfort. understood that a majority of workers reported All seats used on the production floor were discomfort. In addition to buying commercially- stools without back support. Those working in a available chairs, the factories experimented with seated position need back support and those designing and building their own chairs, working in a standing position need foot rests or keeping in mind recommendations from IHS stools to allow variation in posture. regarding height and back support. Hot press operators stood while working, and Workers tested various designs and eventually the majority reported discomfort in back, neck, two models were selected for use. One of the and shoulder area. two chairs was specially designed for pregnant women. Factories also installed foot rests for standing tasks. Hot press workers tested different models of back support belts and selected one. Factories provided back support belts for all hot press workers. Pregnant women were seen doing work Each factory developed a written policy on Confirmed inappropriate to their condition. They should not reassigning pregnant women to departments Pregnancy is a normal condition and we don’t have been in areas of solvent use, since where they would not be exposed to chemicals, want a policy that overreacts to it. Specific chemical odors could trigger nausea and can work sitting down, and would not work exposures to solvents are to be avoided, vomiting. Those who had to stand for long overtime. These policies are included in particularly early in the pregnancy. In addition, periods or use stools without back rests information kits and on papan pengumuman heavy work and prolonged standing should be experienced back pain while on the job. (announcement boards) so workers are made avoided late in the third trimester. Chairs should Pregnant women should be removed from aware of the policy. be assigned so women can opt to sit or stand. areas of chemical use and have chairs with Beyond that, pregnancy should be regarded as back rests to allow them to change body Although pregnant workers had sometimes been normal. position and be comfortable. reassigned in the past, the new policies were written to ensure more consistent treatment. 5.7.3 Ventilation Thermal comfort is seldom thought about in the HIPERKES performed temperature surveys of Measurements of temperature taken during the tropics, where the assumption is that people are DJI and TYI in February 1999. Various locations course of the second round of chemical testing accustomed to heat. However, some areas of in each factory ranged from 28.5 to 29.3 degrees revealed temperatures well in excess of thermal the factories exceeded comfortable limits. This is celsius, a range which met the Indonesian comfort parameters. DJI ranged from 28-36 important because the body functions optimally government standard for light work (e.g., sitting degrees celsius in the lasting department, while within a narrow temperature range, thus control or standing to control machines, performing light TYI had no location below 33 C. Development, of thermal comfort can increase productivity, hand or arm work). lasting and UV areas were particularly warm with attention, and quality of output. temperatures in the mid-30s C. However, these temperatures were excessive for More attention should be paid to air circulation areas of heavy work, such as rubber pressing and and ventilation as a means of reducing heat. rolling. Currently, pressing workers stand over air Ventilation did not adequately address the issue vents which provide some relief. The use of air of thermal comfort of workers. conditioning is not feasible (nor is it customary), so alternatives are being sought. Signs encouraging frequent water drinking have been posted in pressing areas and workers are allowed water breaks without restrictions. Reebok is studying the feasibility of ventilation changes proposed by an industrial hygiene consultant which might reduce heat, such as installing canopy exhaust over the top of pressing machines. Reebok is also working with factories in other countries to seek solutions to this challenging issue. Ventilation systems relied on upward exhaust for Ventilation in grinding was tested by an industrial The ventilation experts’ view was that for finer dust extraction, a method which is costly, hygienist and was found to have sufficient dust-producing tasks masks are still required. unsuitable, and ineffectual. Dust intake should exhaust flow to capture the dust being produced. be positioned as close to the source of dust as (Particles which were not exhausted were too Buffing is still unknown in terms of respiratory risk. possible and should rely on downdraft exhaust. large to present a respiratory hazard.) If a mask is used for purposes of comfort, a surgical or simple Two designs for suitable dust ventilation for DJI Respiratory protection was not always worn in mask will suffice. have been proposed by ventilation consultants. environments where dust is a problem. The easiest option may be to create a mezzanine In rubber rolling and compounding, assessment floor with downdraft ventilation similar to that of by industrial hygiene consultants concluded that TYI. ventilation of dust was extremely poor and improvements were required, including increasing air velocity at exhaust intake and implementing regular cleaning of ductwork to prevent dust buildup. Factories are studying two proposals and changes will be made in 1999. In compounding and rolling, dust masks are required and used (masks with an N95 rating). They must be used until improvements are made. Chemical mixing areas may not be safely Ventilation on production lines, while functioning Chemical testing revealed improvements, ventilated, as workers reported rashes and adequately, would be enhanced by depressing particularly in TYI dipping. Countersinking the headaches. chemical dispensers into countertops, closer to bowls should present few problems as it will exhaust vents. This idea is currently being maximize the ventilation of fumes. Ventilation on production lines could be discussed within factories. improved by placing container openings closer to exhaust vents. Workers performing Tests revealed that most workers were not backcounter dipping at TYI were overexposed to overexposed, but exposures could be further solvent fumes, a matter requiring immediate reduced by modifying chemical dispensers as ventilation improvements. recommended. Exposure levels are expected to decrease as factories progress in their ongoing efforts to achieve solvent-free production. Backcounter dipping at TYI was relocated to a different room with a new ventilation system. The dipping process will be converted to a hot melt process in September, 1999, which will eliminate solvent fumes from that production area. Both factories now have water-based laminating machines, an improvement over solvent-based laminating which will reduce worker exposure to organic solvents. 5.7.4 Chemical handling procedures Material safety data sheets (MSDS), which MSDS were not supplied in the local language Confirmed contain important safety instructions, are because no buyers had previously requested required for all chemicals, but they were not this. Chemical suppliers now supply MSDS in accessible on the factory floor. Workers did not Indonesian and copies are made available in the know what they were or where to find them. laboratory, mixing rooms, storage areas, and Factories must make these available, as they union offices. An explanation of the purpose of have information about health hazards, MSDS is included in the information kits stationed handling precautions, and instructions for throughout the factory. handling accidental overexposure, spills, and fires. Waste storage areas should have written Four sets of chemical procedures were Confirmed chemical safety procedures posted and workers developed and posted in Indonesian in the should be trained in following these procedures. appropriate areas. There are instructions for chemical use on the production line and procedures to be used in chemical storage. Directions on handling spills are posted in mixing areas and procedures for container disposal are in waste disposal areas. Additional chemical handling training will occur in conjunction with health and safety training provided by ERM. Workers did not know what to do in case of Designated workers are in charge of spill clean Confirmed chemical spill and were seen using methyl ethyl up, using proper materials and procedures. 3M ketone (MEK) to clean floors. Spill cleanup kits Corporation (manufacturer and distributor of with absorbent materials should be provided and safety equipment) provided spill clean-up training an alternative, nonhazardous cleaner should be to both factories. Alternative, citrus-based used to clean spill residue. cleaners are being investigated. Chemicals put out for daily use were not always All chemicals are covered with lids at all times. Confirmed covered with lids, though they must be covered at all times. A container with a leaking tap was Glue suppliers were asked to change the design observed. Although another container was of the cans, or to use plastic containers with positioned to catch leaks, this was nonetheless handles and spouts. So far an alternative design a spill hazard. has not been adoped. In the meantime, factories developed covers that can be used over the In an attempt to minimize waste, workers cut corners of cans. open the corner of glue cans to get all glue out of the can, which cannot be done through the normal opening. However, excessive fumes escaped because this makeshift opening could not be capped. Either this practice should stop altogether or a method of capping the corner opening be developed. Most chemicals were poorly labeled or not Extensive communications with suppliers Confirmed labeled at all. Those with labels were written in requested that they properly label all materials for English, not Indonesian. The factory does not the customer. Liquid chemicals are now labeled routinely label all incoming shipments, but properly, but not all dry chemicals are labeled. should do so in the absence of supplier labeling. Because other buyers do not yet require such labeling, the factories are thus introducing a new business practice which could have widespread impact. Chemical shipments were not carefully inspected Factories now unload chemicals with forklifts. Confirmed and drums were offloaded from trucks by They adopted written inspection policies which dropping them onto the ground. are now posted in warehouses and are observed. Chemicals were transported around the Chemicals are now moved on carts with sirens Confirmed production lines in open containers without traffic or bells to warn others. signaling to warn others of their transport. Empty chemical drums were left open, even All drums are covered at all times. Confirmed though they contain remnants of chemicals. They should be covered at all times, whether full or empty. Members of the communities surrounding the Factories arranged to return chemical cans to Confirmed factories collected factories’ empty chemical suppliers and to have hazardous waste removed containers, to use or resell. This practice, while by an authorized collection company. Local customary, violated government regulation on collection is no longer permitted. The community proper hazardous waste disposal. Containers initially protested the loss of income from waste must go to hazardous waste disposal or back to collection. In response, factories allow local supplier company. collection of nonhazardous waste, such as scrap material. Chemical mixing was done in open containers. Isocyanate testing was performed in chemical Comforting to know that the isocyanate levels are This raised the possibility that workers in mixing areas by an industrial hygienist. Testing negligible. chemical mixing rooms might be overexposed to focused on obtaining "worst case" results, based isocyanates. upon continuous exposure close to the surface of the chemicals being used. Results demonstrated safe levels of isocyanate exposure, less than 5% of the maximum daily exposure limit used in the U.S. The test results were corroborated by the fact that some workers have several years’ experience in the mixing areas without having developed asthma or become sensitized to the chemicals used. The low exposure is likely due to the use of the polyisocyanate forms of chemicals, which are less volatile than the monomeric isocyanates. 5.7.5 Emissions In both factories, polymer waste was burned in DJI installed a completely new waste burning Confirmed (improved emissions systems in both boiler rooms where smokestacks emitted it facility with scrubbers. factories) untreated. Scrubbers are needed to clean the Boiler room temperatures are hot, so it is smoke before it reaches the outside. TYI’s original emissions system had filters. They suggested that sulphur-bearing waste be added a sandblasting system to clean the separated from other waste, and burned at one All workers in boiler rooms should use smokestack itself and to prevent soot build-up regular time each week so that workers need respiratory protection. from being emitted. wear respiratory protection only at that time. Face shields are used at all times and they seem to be Boiler room workers use a respirator (3M mask well accepted. no. 9916), recommended by IHS. 5.7.6 First aid care When asked, factory management responded Red Cross Indonesia conducted First Aid and Confirmed that there was no need for anyone to know and CPR training in 1999, training selected staff from TYI has a first aid team trained in CPR, wound administer first aid because workers could be all sections of both factories. care and patient handling. treated at the factory clinic in the event of an emergency. However, factory management must understand that immediate competent care is essential after any emergency in order to minimize possible disability as well as to save lives. The clinic must be augmented by having someone in each section of the factory trained in first aid and cardiopulmonary resuscitation (CPR). First aid kits were located throughout the two First aid kits are now located in each Confirmed factories; however, the contents were barely department, either on the production floor or in useful. The kits were understocked and not all the office. They are stocked, at a minimum, At TYI, the person responsible for first aid kits in contents were sterile. First aid kits must be well- with sterile bandages, tape, scissors, antibiotic the hot press department is only available during stocked with sterile items and the contents wipes, and latex gloves. the day shift. Make sure the night shift also has should be re-stocked as necessary. access to first aid kits. All areas are now fitted with first aid kits and In fact, the night shift in general is not subject to supervisors hold the keys. Factory floor the same scrutiny as the day shift, thus possibly monitors and supervisors are responsible for leading to relaxed enforcement of Reebok’s re-stocking kits. human rights standards. The factory must be attentive to possible violations of Reebok’s standards at night, including but not limited to proper recording of working time, provision of drinking water and cleanliness of bathrooms. Factories each had eye wash facilities near Trainings in eye wash use were conducted in Confirmed areas of chemical handling, but workers had both factories. not been instructed in their use. 5.7.7 Fire Safety Fire safety is a high priority, as was Both factories’ offices are now hooked up to the Pregnant women and people in the factory clinic demonstrated by good performance during fire central alarm, and fire drills have demonstrated ought to be prioritized during emergency drills. Both factories hold practice evacuation that office staff know how to exit promptly. evacuation. drills regularly. In a spontaneous, unannounced drill at DJI, there was an orderly, efficient Both DJI and TYI included office staff in fire drills. evacuation by all, except for those in the office, who were not included in regular drills. DJI and TYI have good alarm systems with two buttons in each department. This practice should be expanded to include office staff in all fire drills. Fire extinguisher inspections were noted on Fire hoses are now tested regularly. DJI records Confirmed tags. Inspection and testing procedures on testing dates on a hose’s hang tag, similar to the hydrants and hoses were not documented, but procedure for extinguishers. At TYI, hoses are they appeared to be in good condition. used once a month to clean buildings. Tests of fire hoses need to be documentated. One member of DJI’s staff has the full-time responsibility of checking fire equipment. TYI has a dedicated worker who checks fire equipment. Although we witnessed an orderly and rapid DJI widened 9 staircases, lengthening their Confirmed emergency evacuation, we were concerned that tread and adding handrails. TYI improved 1 some internal staircases were too steep for safe staircase by installing hand rails. evacuation. Virtually all workers in both factories knew the All emergency exits are now marked in Both factories must make sure that every exit sign location of fire exits and recognized exit signs. Indonesian. is clearly marked, and the location of the exit sign However, signs denoting emergency exits were is not blocked by materials. not posted at every exit, and some signs were in English. In some cases, signs marking the location of fire Extinguisher markings are now placed higher on Confirmed extinguishers were too low to be seen at a walls for greater visibility, and factories painted distance. markings all the way around columns where extinguishers are located. All markings are in red and are visible from any part of the factory floor. Fire extinguishers were located inside chemical Extinguishers are now stationed directly outside Confirmed mixing rooms and chemical storage areas, mixing rooms. Materials were cleared from however, the Reebok Standards specify that around extinguishers and factory floor monitors they should be stored immediately outside conduct ongoing checks to ensure that they are these areas. Access to one extinguisher was not obstructed. blocked by materials. Theft is a general problem, and security is a Policy was changed so that doors may be Confirmed concern at every factory. DJI implemented closed but may not be locked. Problems with theft limit the practicality of some security by locking the exit doors from the solutions; for instance soap, sanitary napkins and production area during lunch, which blocked medicines all disappear unless supervised. potential emergency exits for those workers who wanted to rest in that area during their break. This practice ought to be changed or the doors fitted with special emergency exit bars which allowed them to be opened from the inside. Existing fire equipment and personal protective DJI installed 27 new smoke detectors and TYI Confirmed equipment was unsuitable for fires in areas installed 13. Both factories will install a dry containing rubber or polymer materials, which chemical fire suppression system as soon as a produce large amounts of smoke. These areas supplier can be located for heat-activated ought to have fire suppression systems in systems using sodium phosphate, monosodium addition to extinguishers. phosphate or monoammonium phosphate. A potential local supplier has been identified and discussions are underway. An industrial hygienist commissioned by Reebok recommended that workers not be expected to fight fires involving rubber, polymers, or toxic smoke, because such firefighting requires regular and frequent training in a variety of personal protective equipment: self-contained breathing apparatus, face masks, gloves, and protective clothing. Without an intensive training regimen, such as that practiced by professional firefighters, workers who try to fight an intense fire would likely be overcome by smoke. All workers have been instructed to evacuate any fire that is creating billowing smoke and allow the local fire department to control such fires. 5.7.8 Personal Protective Equipment (PPE) The wrong personal protective equipment To address the short-term worker training need, Confirmed (PPE), or improper use of PPE, could create 3M conducted on-site factory trainings on a false sense of safety when, in fact, the hazard respiratory protection and hearing protection. All is affecting the worker. Thus, education is very workers using such equipment attended the important to successful PPE use. For example, trainings. workers should understand that hearing protection must be used continuously in order to conserve hearing. Ear muffs should not be removed for part of the work shift. Some workers had inadequate foot protection, Factories announced a policy forbidding bare Confirmed and one was seen working in bare feet. Workers feet and posted signs with this policy. The policy In some tasks such as dipping, closed-toe shoes must wear shoes at all times because chemicals is enforced by factory floor monitors and should be the norm, to prevent chemical from might spill; some chemicals can be absorbed by supervisors. dripping onto bare skin. IHS witnessed workers the skin. handling heavy iron molds while wearing flip flops. The molds were so heavy the workers had to drop them on the work platform rather than placing them down carefully. They run a high risk of injuring their feet and should be required to use steel capped shoes for such tasks. Workers in grinding and buffing, actions which Workers in buffing and grinding who do not have Confirmed in both generate dust, were not using protective a protective shield are now wearing goggles. goggles. Factory should provide this PPE. Workers doing braising, welding, and jobs Welders in both factories use protective eyewear IHS was delighted to see welders in both factories involving intense heat also need to use and usage is enforced. wearing their PPE. In fact, all workshop staff were protective eyewear. wearing PPE. There was not enough protective eyewear for all assistants, but they should be required to wear eye protection. The presence of shielded welding bays was also noted. All workers required to use ear muffs had them, Factory floor monitors are responsible for Confirmed but some muffs were in poor shape and checking ear muffs for wear and tear, and The comfort factor has also improved, which leads required maintenance. An examination of those replacing damaged equipment. Factories must to a higher level of compliance. muffs revealed that the dampening foam had obtain replacement foam from the manufacturer. been removed in some cases and in others the padding was worn and split, meaning that both Based on noise surveys by HIPERKES and an foam and padding required replacement. industrial hygiene consultant, and according to standards for occupational noise exposure issued Replacement materials should come from the by the National Institute for Occupational Safety manufacturer to guarantee proper functioning and Health (NIOSH), Reebok recommends that (i.e., sufficient noise reduction). factories use ear muffs, not earplugs. In the face of heat and humidity, earplugs may NIOSH recommends "de-rating" (i.e., subtracting) be preferable to ear muffs. 50-70% of the advertised noise reduction rating (NRR) for earplugs. Thus, the safest way to provide adequate protection is to require ear muffs in all positions requiring hearing protection. Gloves did not fit all assembly line workers Factories located impermeable gloves of an Confirmed properly, making their work difficult. appropriate size and type (polyisoprene rubber). The majority of workers report no problems with these gloves. Hot press workers were using cotton gloves with To date this problem has been surprisingly Confirmed experimentation with several gloves. inadequate grip and insufficient heat protection. difficult to resolve. Several glove types have IHS will assist in locating suitable glove. been tried, none of which has the right combination of fit and heat resistance. The first heat resistant gloves tried (Indonesia-produced) were ineffective. The second type, from Australia (North brand), were effective but the size was too large for workers’ hands. This brand cannot be obtained in a smaller size. A third and fourth type of glove (with kevlar) in smaller sizes were obtained from a US manufacturer. Workers preferred these to their regular gloves, but still preferred the North brand gloves to these. Additional sizes and types are being tested. As soon as a heat-resistant glove is identified in the appropriate size, factories will be required to purchase for pressing room workers. 5.7.9 Machine guarding Machine guarding was generally acceptable, but All exposed belt drives and exposed portions of Confirmed that performance is better but there are was problematic in some areas of both factories. rolling mills were covered. still some problems: In many instances, such as skiving machines, * The intersection cutting blades on the trimming belt drives were partially guarded, but were not machines (after the soles have emerged from the guarded underneath. Additionally, the backs of hot press) need a collar to prevent fingers from rolling mills sometimes have unguarded being cut. transmissions which needed to be enclosed. * Machines in the phylon trimming area need Some transmissions and belt drives were left guards, as the transmissions are located at open at the bottom, a hazard in case of a slip. workers’ hand level. Circular saw blades should be fitted with Saw guards were installed at both factories. Confirmed revolving guards that slip back as materials pass Some excellent problem solving and design put through the saw. into this! 5.7.10 General Facilities Needs There were no facilities in the toilet area for Sanitary napkins made available at both Confirmed purchasing or disposing of sanitary napkins, or factories’ "koperasi", co-operative stores with Some concern was expressed that the for washing menstrual cloths. reduced-price goods. Water is available in all cooperative is not open at all times. Napkins bathroom stalls for washing menstrual cloths should also be available from the clinic, which is and waste baskets with covers are available in open 24 hours a day. all women’s bathroom stalls. The total number of toilets was inadequate Factories built more toilets or, in some cases, Number of toilets is sufficient at current numbers according to 1960s Indonesian regulations. converted men’s toilets to women’s toilets of workers, but will not be if the factories expand. Because the factories are quite large, the total without reducing the number of men’s toilets to Both factories must educate workers to turn off number is less important than access to an unacceptable level. the water tap when finished to prevent the water sufficient facilities in each area of the factory. from running out. At TYI some water taps are There were fewer toilets available to gone and some need to be repaired. At DJI the women than men. bathroom windows are too low. Factory should Not all toilets were the squat variety preferred by add transluscent material to the windows to workers (preferred over toilet seats, which tend protect privacy. to be avoided). Drinking water should not be located close to At TYI, the drinking water station on the second Confirmed areas of chemical use, so that workers do not floor is no longer near chemical fumes; all dipping In some areas the water dispenser is not working. have to enter that environment to obtain water. processes were relocated to a well-ventilated Make sure that drinking water is always available room downstairs. In addition, all dipping functions and close to the workers. will cease in September 1999 when a hot melt process is instituted. All other drinking water stations are located outside of buildings, a safe distance from areas of chemical use. The DJI cafeteria was unclean because workers DJI tried many approaches to getting workers to The canteen is still dirty. Sanction those not were not properly disposing their garbage. More clean up their garbage, all unsuccessful. Finally abiding by cleanliness rules. Post this statement garbage bins should be provided and rules about the factory built a traffic flow system to encourage everywhere. workers disposing garbage enforced. proper garbage disposal. Factory staff are assigned to check that workers carry their trays to disposal areas. Once this garbage disposal becomes routine, it is anticipated that monitors will no longer be needed. Factory lighting is insufficient for working with Factories planned an overall strategy for In some areas lighting has already been black soles and black materials. Brighter lights examining the issue of sufficient lighting: upgraded. In TYI the physician suggested that are needed. 1) All positions must achieve, at a minimum, the some misunderstanding arose when translating Indonesian standard of 200 lux. This also the unit of measurement from footcandles to lux. adheres to the American National Standards Institute (ANSI) minimum of 200 lux for all industrial tasks. (No OSHA standard exists.) Using HIPERKES results and factory’s own reviews with light meters, factories are beginning to improve lighting up to this minimum. Lighting improvement is a long-term project for both factories. 2) Reebok will commission a study by a light expert to recommend standards by factory section. 3) Factories will act to achieve new standards. 5.7.11 Other Use of quantitative surveys is not currently part Reebok staff are trained in monitoring, of Reebok audit instruments. Reebok human interviewing, and audit principles and must have rights monitors should have skills in quantitative good communications skills. Statistical surveys survey design and analysis because surveys will be done on a selective basis. provide a quantitative basis for judging the significance of some problems. Survey design and analysis will be sought from qualified experts. Appendix A About IHS IHS was established in August 1991 to meet the need in Indonesia for local firms with the capability to provide social science consultancy and research services at international standards. IHS services are targeted at the private and public sectors, which includes international donor agencies. IHS's activities have covered a wide range of substantive areas. Its portfolio of projects contain a strong emphasis on human resource development, poverty alleviation, urban development, and community development. From its office in Jakarta, IHS has been well positioned to undertake sophisticated research and consultancy projects in its areas of competence by leveraging its personnel and resources, increasing infrastructure base (computers, statistical source materials), and access to complementary outside expertise. IHS has established networks with other national and international experts and institutions and has, in several cases, engaged in various forms of collaboration on particular projects. In Indonesia, this has included experts from the Indonesian Department of Manpower, the Central Bureau of Statistics (BPS), the Demographic Institute in the Faculty of Economics at the University of Indonesia (LD-FEUI), the Institute of Agriculture in Bogor (IPB), and PT Indoconsult. Internationally, IHS has collaborated with companies such as Agrodev (Canada), Winrock International (USA), Development Alternatives International (USA) and Huszar Brammah and Associates (UK). A major part of IHS's work has involved research and consultancy for major multilateral and bilateral donor agencies, including the World Bank, Asian Development Bank, U.S. Agency for International Development, and the Dutch Government. It should be emphasized that although IHS is an Indonesian firm conducting work in Indonesia, all of this work has been carried out as an international consultancy. This has included all of our direct contract work for the World Bank, the Asian Development Bank, and other international agencies. About the Evaluation Team Dr. Mayling Oey-Gardiner, Executive Director of IHS, served as Team Leader. She is a widely recognized and published social scientist with expertise in social demography, survey research methods, human resource analysis, women's studies (education and employment), and social impact analysis. Dr. Oey-Gardiner holds the following degrees: M.S., Population Studies, Harvard School of Public Health, Cambridge, MA, USA, 1974; Ph.D., Demography, The Australian National University, 1982. Over the past twenty years, Dr. Oey-Gardiner has led major research projects covering a wide range of social, economic and demographic issues. Her work has included both primary (survey-based) data collection and analysis, notably on issues concerned with population mobility and transmigration, small-scale industry, non-formal sector employment and education, in-depth case studies on poverty, and social impact analysis, as well as secondary data analysis on a variety of topics. In recent years, Dr. Oey-Gardiner's interests have focused increasingly on the public policy aspects of women's issues and poverty, and education and employment issues in Indonesia. She has taught undergraduate courses in sociology and research methods in the Economics Faculty, University of Indonesia. She is a frequent lecturer on social and demographic topics. Dr. Peter Gardiner, who served as Research Specialist on this project, is a noted demographer with expertise in areas of demographic analysis, survey research methods, which includes large scale data processing and information systems design, and in urban development analysis and social service and environmental planning. Dr. Gardiner holds the following degrees: B.A., in Economics, University of Rochester, Rochester, NY, USA, 1967; Ph.D., Demography, The Australian National University, 1982. Dr. Gardiner has more than 20 years experience in demographic and socioeconomic analysis, with more than 15 years of that experience in Indonesia. He has been a user of village-level data, notably on work in urban infrastructure planning, including use of this data as a basis for the planning and targeting of services for the urban poor. He has extensive experience in planning and in development of indicator-based analytical systems and applications that assist with planning and monitoring of urban development both on the National Urban Development Strategy (NUDS) project and in subsequent work on urban infrastructure planning in several of Indonesiaís major urban centers. In his work with IHS, he has been responsible for leading teams of international and domestic consultants to organize and execute major, technical exercises. This includes studies on women in the non-formal sector and on Indonesian graduate education. He has also worked in a senior advisory capacity with a number of Indonesian Government institutions including BAPPENAS, BPS, the former Ministry of Population and Environment and the Department of Public Works. Ms. Evelyn Suleeman served as Monitoring Specialist, and coordinated data collection and monitoring within the two factories. She holds the following degrees: B.A., Sociology, University of Indonesia, 1982; M.A., Family Studies, Michigan State University, USA. For 12 years, Ms. Suleeman has been engaged in a variety of social research issues. Her work has included both survey-based data collection and analysis, secondary data analysis, and literature reviews. In addition to carrying out her research responsibilities for IHS, Ms. Suleeman has taught sociology and research methodology at the University of Indonesia. Most recently, her teaching has been extended to responsibility for graduate level instruction in research methods at the University of Indonesia. Ms. Stella Maria Angela, who served as Labor Relations Specialist, was responsible for reviewing labor-management relations and the role of labor unions. She holds an M.A. in Development Studies from the Institute of Social Studies, The Hague, 1993. Ms. Angela began her career as a labor rights activist for women. For three decades, she has been engaged in a variety of monitoring and consulting activities related to women's labor issues, such as labor rights, occupational health and safety, and sexual discrimination and harassment against women in the workplace. She has extensive expertise as a researcher and consultant in both management and monitoring of labor issues. She has served as a consultant to the International Labor Organization and as Chair of the Women, Youth and Child Institute of the National Board of the All Indonesian Workers Union. Ms. Melody Kemp, who served as occupational health and safety specialist, holds the following degrees: M.S., Tropical Public Health, University of Queensland, Australia; B.App. Sc., Lincoln Institute of Health Sciences, Australia, 1971. Ms. Kemp was responsible for the occupational health and safety aspects of the project. She has extensive experience in occupational health and labor issues, women's occupational health, environmental health, training and education, and gender and development in Indonesia and Vietnam. For more than fifteen years, Ms. Kemp has been engaged in research covering a wide range of chemical and environmental health issues, particularly the occupational health of women. She has developed and conducted training courses related to the health of female industrial workers. She has taught undergraduate and post graduate courses related to occupational health and industrial psychology. She is also the author of children's stories with themes of environmental protection. Ms. Daisy Indira Yasmine, Fitranita,Kurniati Indahsari and Sulastri, all members of IHS staff, also contributed ably to the project. All professional IHS staff are fluent in Indonesian and English. Appendix B Reebok Human Rights Production Standards A Commitment to Human Rights Reebok's devotion to human rights worldwide is a hallmark of our corporate culture. As a corporation in an ever-more global economy, we will not be indifferent to the standards of our business partners around the world. We believe that the incorporation of internationally recognized human rights standards into our business practice improves worker morale and results in a higher quality working environment and in higher quality products. In developing this policy, we have sought to use standards that are fair, that are appropriate to diverse cultures, and that encourage workers to take pride in their work. Application of Standards Reebok will apply the Reebok Human Rights Production Standards in our selection of business partners. Reebok will seek compliance with these standards by our contractors, subcontractors, suppliers and other business partners. To assure proper implementation of this policy Reebok will seek business partners that allow Reebok full knowledge of the production facilities used and will undertake affirmative measures, such as on-site inspection of production facilities, to implement and monitor these standards. Reebok takes strong objection to the use of force to suppress any of these standards and will take any such actions into account when evaluating facility compliance with these standards. Non-retaliation Every factory producing Reebok products will publicize and enforce a non- retaliation policy that permits factory workers to speak with Reebok staff without fear of retaliation by factory management. Non-discrimination Reebok will seek business partners who do not discriminate in hiring and employment practices, and who make decisions about hiring, salary, benefits, advancement, discipline, termination and retirement solely on the basis of a person's ability to do the job. Working hours/Overtime Workers shall not work more than 60 hours per week, including overtime, except in extraordinary business circumstances. In countries where the maximum work week is less, that standard shall apply. Workers shall be entitled to at least one day off in every seven day period. Forced or compulsory labor Reebok will not work with business partners that use forced or other compulsory labor, including labor that is required as a means of political coercion or as punishment for holding or for peacefully expressing political views, in the manufacture of its products. Reebok will not purchase materials that were produced by forced prison or other compulsory labor and will terminate business relationships with any sources found to utilize such labor. Fair wages Reebok will seek business partners who share its commitment to the betterment of wage and benefit levels that address the basic needs of workers and their families so far as possible and appropriate in the light of national practices and conditions. Reebok will not select business partners that pay less than the minimum wage required by local law or that pay less than prevailing local industry practices (whichever is higher). Child labor Reebok will not work with business partners that use child labor. The term "child" generally refers to a person who is younger than 15 (or 14 where the law of the country of manufacture allows) or younger than the age for completing compulsory education in the country of manufacture where such age is higher than 15. Freedom of association Reebok will seek business partners that share its commitment to the right of employees to establish and join organizations of their own choosing. Reebok recognizes and respects the right of all employees to organize and bargain collectively. Safe and healthy work environment Reebok will seek business partners that strive to assure employees a safe and healthy workplace and that do not expose workers to hazardous conditions. INSAN HITAWASANA SEJAHTERA Graha Arsa 1st flr JI. Siaga Raya No. 31 Pejaten Barat, Pasar Minggu Jakarta Selantan 12510 Indonesia Phone: (62-21) 7986750 Fax: (62-21) 7986626