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Collective Bargaining Agreeement

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					    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

				
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