Indonesia - Workers win court battle, successfully conclude agreements (2011)

Workers secured better conditions in terms of wage increases and recognition of their unions in different sectors during the year. On May 14, the International Metalworkers’ Federation (IMF) affiliate, Federation of Indonesian Metalworkers Union (FSPMI), won a major court battle involving the bankruptcy filing of PT Kymco Lippo Motor Indonesia. The Special Regional Court ruled that the company’s moveable and immoveable assets, including land and buildings, be auctioned off to pay wages owed to the workers.

In the garment sector, after a three-year campaign, the Indonesian garment factory PT Mulia Knitting Factory signed an agreement with SBGTS union affiliated with the Gabungan Serikat Buruh Indonesia (GSBI - Federation of Indonesian Trade Unions) in May. The agreement recognises SBGTS as the representative of their members at PT Mulia and provides compensation for five former employees who were dismissed in 2007 as a result of their union membership.

And in January, the International Union of Food (IUF) affiliate, Kirin Miwon Foods Workers Union (SPKMF), requested to start negotiations with Kirin Miwon Foods (Kirin). Kirin initially refused to negotiate with SPKMF and refused to provide SPKMF with information relevant to the bargaining process. However, in late May SPKMF successfully concluded negotiations with substantial increases in wages and benefits.

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