Following a report by SISBIKUM who did research in 7 sub-contracting factories.

To muffle labour demand with regard to wage and welfare, the goverment of Indonesia through the Minister of Manpower of the Republic of Indonesia has since April 1, 1996 increased the Regional Minimum Wage Stipulation for Jabotabek area from Rp 4.800,- (US$ 2.0> to Rp 6.000,- (US$ 2.1>. This stipulation is said by the Minister of Manpower as security net provision. Yet in reality, at many sport shoe companies such as subcontracting companies Adidas, Rebook1 Nike, LA Gear, even Garment as well, constituting the concern of SISBIKUM service, generaly refuse to pay wage based on the said UMR stipulatlon. The reason of the companies refusing to implement the new UMR stipulation is as mentioned, that the condition of the shoe industry at this moment is immensely in recession. And if forced to do so, many factories will close and a loss of working fields will be the consequence.

The Goverment through this threat finally consented to the request of the companies to postpone the payment of the UMR stipulation for a period of 1 year from the day the new UMR stipulation came in effect. With the consequence that more than 15.000 worker, in majority women, from the 7 sub-contracting companies producing sport shoes, PT. L, PT. BG, PT. IW, PT. IS. since May -June concurrently carried out strikes, opposing the postponement of the said new UMR payment. Yet as the result, the labor remain receiving just the wage below the new UMR stipulation.

Whereas a wage of 2.2 Dollar per day, when calculated in labor minimum size of need of life too, such as amount of wage may in fact be used for life need of 15 days only after deduction of room rent of US$ 2.2 per month. The rest, the labor are forced to work overtime 2-4 hours a day, so that to fulfill the need of life of one month, the labor generally are forced to work 10 to 12 working hours a day. For labor, daring to refuse overtime, eventhough on Sunday, the consequence of threat of termination of work relation and wage and work deligence premium reduction will be the result. So that the labor eventhough in an exhausted and very weak condition must survive for the sake of his/her life continuity. The labor in this condition are of course not able to let their children go to school.

Even though the convention to abolish all forms of discrimination toward woman has regulated among others the rights of woman on work, health and marriage, yet in fact the rights of woman labor working at these 7 sport shoe producer sub-contracting companies are still neglected. Out of 150 labor interviewed and Involved in this case study, mentioned that the rights of labor were not yet implemented. For labor who must undergo menstruation leave right, must be prepared to be examined first. While for labor who are pregnant and giving birth, rest is provided but the wage during rest are not paid.

Generally the work environment and health are very bad and causing consciousness for labor undergoing sickness and fainted due to long working hours and target working system. Out of these 7 companies only two companies provide polyclinics. The rest only provides kind of medicines just for pain relief. For labor working at the cutting department, work safety equiepments are not provided. So that they frequently experlence accidents such as their fingers cut. For labor working at shoe sole gluing department, a masc and other work safeties are not provided, so that they often cough as the result of eye and skin irritations.

In the Indonesian political condition developing at this moment, the attendance of other independent labor organizations will not be allowed, other than the labor organizations controlled by the Goverment. Even though in Indonesia the law in effect (1945 constitution, Article 28, Law No. 18/56, ILO Convention Nr.98>, guarantees liberty of organizatlon. Out of the 7 sport shoe producer sub-contracting companies of export quality being in the interest of this case study, only 1 company, i.e PT. IS that produces Adidas shoe has a labor organization controlled by the company (SPSI . All Indonesian Workers Organization>. The other six companies prohibit, even hinder the forming of labor organization, eventhough labor organization is acknowledged by the goverment, i.e. SPSI.

Causing most concern again from these 7 companies is the finding of more than 350 child labor of an age ranging form 12-14 years. And in general these children are placed at the same apartment with the adult labor, but the wage is different and calculated according to work attendance. Whereas in the production structure these child labor are placed and employed in the entire process of production. From 75 child labor interviewed, they mention that working at a shoe factory is immensely tiring. But due to the need of life and family, they are forced to stay. For child labor that are found ill, they directly are dismissed and replaced by new child manpower. The child labor also mention, that they are frequently forced to work overtime until late at night.

From the result of the case study of the 7 sport shoe producer subcontracting companies above, SISBIKUM Foundation implements this moment a program, among others:

1. To conduct awareness training for labor organizations to understand the code of conduct, knowledge of law and industrial relation analysis. This awareness training is intended as and effort to bring forth strong labor leaders in their groups.
2. To develop labor discussion groups, particularly in shoe and garment factories.
3. To establish a Communication Forum of sport shoe and garment Factory Labor of export quality at local level. This program is intended as a group working net forum to solve labor problems faced at each work place. In addition, this forum is also to be utilized as a campaign forum of code of conduct at local level.
4. At this moment the SISBIKUM Foundation is planning an indept study at these 7 companies. Yet due to difficulties in looking for fund, the program up to this moment is postponed. According to the plan, this study will be performed through cooperation of SISBIKUM with the Demographycal Institution of the University of Indonesia

Jakarta, 12 September 1996