Profile of PT Indonesia Wacoal.

Established in 1981, Wacoal Indonesian Limited Liability Company, domiciled at Jl. Tarikolot No. 59, Citeureup, Bogor, moving in the apparel industry which was established based on deed no. 230 dated 22 February 1991 which was made
by Misahardi Wilamarta SH, notary in Jakarta and latest company deed No. 10 dated 3 November 2008 made by Mellyani Noor Shandra SH, notary in Jakarta.

PT Wacoal Indonesia is a company engaged in clothing production and has 261 branches. Currently, PT Wacoal Indonesia has carried out domestic sales as well as export activities to foreign countries such as Japan, the Philippines, Malaysia, South Korea, Singapore, Vietnam, Taiwan, China, Hong Kong, USA and India. Apart from receiving KITE facilities, PT Wacoal Indonesia has also been certified as an Authorized Economic Operator (AEO) since 2016.

The company is also consistent as a manufacturer and retailer of Wacoal Women's Intimate Apparel in Indonesia. Currently, Wacoal products are available in all major department stores and continue to gain recognition in the premium market in Indonesia.

The main aim is to help build a more prosperous cosmopolitan society by providing beauty solutions, in the form of products and related information, to meet customer needs. Specialists in stretch fabrics, which are essential for the intimate clothing products we produce.

The company also develops new fields, brands and business models, based on our design policy based on the keywords Beauty, Health and Comfort. For more than half a century, it has cultivated a company culture that encourages highly creative people to thoughtfully design Intimate Apparel for women. Their current focus is expanding from simple ideas about female beauty to lifestyle.

Collective Bargaining Agreement (CBA) PT Indonesia Wacoal

CBA BENCHMARKING
PT. WACOAL INDONESIA

  1. Best & Bad Practices on Freedom of Association
    Best Practice:
    1.1. ARTICLE 8: FACILITIES – FACILITIES FOR TRADE UNIONS (1) To support the activities of Trade
    Unions, the Company provides office space facilities to be used as a secretariat, where
    these facilities are the Company’s inventory loaned to the Trade Union. (2) The Company
    provides notice boards for organizational activities, and every announcement must be
    posted on the notice board for easy reading by the Workers. (3) The Company assists in
    deducting Workers’ wages for organizational dues in accordance with Ministerial Regulation
    No. 01 of 1984. Comment: Recognition of the existence of labor unions and the provision of labor union secretariat facilities in clauses 1 and 2, as well as the collection of dues through a check-off
    system in clause 3, are positive points for the labor union.
    1.2. ARTICLE 9: DISPENSATION FOR TRADE UNIONS (1) In order to fulfill organizational duties or
    government agency duties related to labor activities, the Company grants dispensation to
    leave work for officials or members of the Trade Union who are mandated. (2) Dispensation
    for officials or members of the Trade Union is given in the form of a quota of working hours,
    where 8 working hours per week will be provided, with the provision that unused
    dispensation is not carried over to the next day or week. (3) In certain cases and with
    specific considerations, taking into account the nature of the activities, the company may
    grant dispensation beyond the specified time limit in clause 2. (4) This dispensation can be
    given if accompanied by evidence of an invitation to attend the activity accompanied by a
    mandate from the Trade Union.
    1.3. EMPLOYMENT RELATIONSHIP ARTICLE 10: BIPARTITE FORUM The Company and the Trade
    Union are obliged to encourage peace and tranquility in the workplace. To foster smooth
    mutual relations, the Company and the Trade Union establish a Bipartite Forum with
    activities including: 1) Holding meetings as needed to discuss issues related to productivity
    improvement, labor, or to exchange information. 2) As a forum for fostering and resolving
    Workers’ issues jointly between the Company, the Trade Union, and Worker
    Representatives.
    Bad Practice
    1.1. Article 2: Trade Unions registered with the Department of Social Affairs, Manpower and
    Transmigration of the Republic of Indonesia: (1) Garteks Workers Union PT. Indonesia
    Wacoal Registration No.: 602/SP-SB/FSB-GARTEKS/SBSI/IW/91200/VIII/2012 Date 13
    September 2012 (2) Lomenik Workers Union PT. Indonesia Wacoal Registration No.:
    674/SP-SB/FLOMENIK/SBSI/IW/91200/II/2013 Date 28 February 2013
    Comment: There are 2 labor union federations under the same Confederation in this
    Company.
    1.2. Article 19:2 Conversion of Fixed-Term Workers into Indefinite Workers based on subjective
    performance assessment and company needs.
    Comment: Fixed-term contract workers should automatically be converted into indefinite
    contract workers after a maximum of 5 years of service according to Government Regulation
    no. 35 of 2021.
  2. BEST and BAD PRACTICES ON WAGES
    Best Practice:
    2.1. Article 31:4 Allowances/Contributions Death benefits and wedding contributions are
    provided by the Company as a gesture of kindness to Workers and their families, given to
    Workers who have been employed for more than 1 (one) year. Death benefits are provided
    to the Worker’s family, namely: legitimate spouse (only for one person), birth parents
    (Father/Mother), and biological children. Wedding contributions are provided to Workers
    for their first marriage. The amount of Death Benefits and Wedding Contributions is
    regulated separately.
    2.2. Article 33: LENGTH OF SERVICE ALLOWANCE (1) Length of service allowance is provided
    by the company to employees who have been employed for more than 1 (one) year. (2)
    Length of service allowance given to employees is Rp.6,000 per month starting January
    2022, while the total amount of length of service allowance depends on the employee’s
    length of service. (3) This length of service allowance will be stated on the payslip.
    Comment: Length of service allowance is not regulated by law.
    Bad Practice:
    2.3. Article 30:3 It is the general policy of the Company that every review of wages for
    Workers does not automatically always mean an increase in wages. The results of job
    performance assessments by Workers are a factor that can determine whether a Worker
    receives a wage increase, in addition to factors such as circumstances and the Company’s
    financial capability.
    Comment: This clause has the potential for unilateral and subjective assessment. The
    preceding clauses 30:1 and 30:2 have already regulated the wage scale structure, which
    should already be the basic reference, clause 3 poses a threat to nullify the implementation
    of clauses 1 and 2.
  3. BEST and BAD PRACTICES ON GENDER
    Best Practice:

    3.1. Article 26: 3c Menstrual leave applies if the Worker feels unwell on the first and second
    days of menstruation, by notifying/requesting permission in advance and attaching a
    doctor’s note.
    Comment: Attaching a doctor’s note is not stated in the Law and may indicate difficulty for
    female workers to access menstrual leave.
    3.2. Chapter XII on THE ELIMINATION OF GENDER-BASED VIOLENCE (Appendix to the
    Collective Labor Agreement) – attached at the end of this analysis
    OTHER:
    1.1. Article 26: 2 The Company grants permission to the Worker to be absent while still
    receiving wages outside of rest days/annual leave, for the following reasons: Death of a
    family member in the same household 1 (one) working day
    Comment: Not regulated in Law No. 13/20023 or 6/2022
    1.2. ARTICLE 38: RECREATION/ENTERTAINMENT (1) The Company will organize and hold
    tours/recreation every 2 (two) years (if the company’s financial condition is healthy). (2) In
    the implementation of tours/recreation, workers are allowed to bring 1 (one) school-aged
    child. 3) Workers who can participate in tours/recreation must have been employed for at
    least 1 (one) year.
    1.3. ARTICLE 49: TERMINATION OF FIXED-TERM EMPLOYMENT AGREEMENTS (PKWT) (1)
    The employment relationship between the Company and the Worker ends automatically by
    law after a certain period of time agreed upon and agreed upon at the time the agreement
    is made
    1.4. t. (2) The Company is obliged to provide compensation upon the termination of a fixed-
    term employment agreement (as regulated in Government Regulation Number 35 of 2021).
    Comment: This clause potentially terminates the employment relationship according to the
    PKWT contract, which is not renewed without clear reasons (considered the end of the
    employment contract)
    1.5. ARTICLE 50: PROBATIONARY WORKERS WHO DO NOT MEET THE REQUIREMENTS
    During the probationary period, the Company has the right to terminate the employment
    relationship at any time if the Worker is deemed not to meet the requirements, without
    ATTACHMENT:
    I. DEFINITION

    Article 1
    This regulation is mutually agreed upon between the Company and the Labor
    Union/Workers and included in the Collective Labor Agreement or separate agreements.
    The understanding of Gender-Based Violence within this regulation: (a) the term “violence
    and harassment” in the workplace refers to a series of behaviors and practices that are
    unacceptable, or threats thereof, whether occurring once or repeatedly, aimed at, resulting
    in, or likely to result in physical, psychological, sexual, or economic harm, and includes
    gender-based violence and harassment; (b) the term “gender-based violence and
    harassment” means violence and harassment directed at individuals because of their sex or
    gender, or impacting individuals of a specific sex or gender disproportionately, and includes
    sexual harassment. Without prejudice to sub-clauses (a) and (b) of paragraph 1 of this
    Article, the definitions in the applicable national legislation may serve as
    references/guidelines.
    II) SCOPE
    Article 2

    This regulation is aimed at protecting workers and others in the workplace, including
    employees as defined by national law, as well as persons working regardless of their
    contract status, persons in training, including trainees and interns, terminated workers,
    volunteers, job seekers and job applicants, and persons exercising the authority, duties or
    responsibilities of the employer. This regulation applies to all sub-sectors of jobs/positions
    within the scope of work, both management and labor/workers.
    Article 3
    This regulation applies to violence and harassment in the workplace occurring while
    working (within the scope of employment), related to or arising from work: (a) at the
    workplace, including public and private spaces where the space is a workplace; (b) in places
    where workers are paid, rest or eat, or use sanitation, washing and changing facilities; (c)
    during travel, commuting, training, events or social activities related to work; (d) through
    work-related communication, including communication made possible by information and
    communication technology; (e) in accommodation provided by the employer; and (f) during
    travel to and from the workplace.
    III) CORE PRINCIPLES
    Article 4

    The Company supports, respects, promotes, and realizes everyone’s right to a workplace
    free from violence and harassment in the workplace or environment. The Company, in
    implementing this gender-based violence elimination regulation, adjusts to the applicable
    national laws and agrees jointly with representative Labor/Worker organizations using an
    inclusive, integrated, and gender-responsive approach for the prevention and elimination of
    violence and harassment in the workplace. Such an approach should consider violence and
    harassment involving third parties, if any, and include: (a) prohibiting, by law, violence and
    harassment; (b) ensuring that relevant policies address violence and harassment; (c)
    adopting comprehensive strategies to implement measures for preventing and eliminating
    violence and harassment; (d) building and strengthening enforcement and monitoring
    mechanisms; (e) ensuring access to recovery and support for victims; (f) regulating
    sanctions; (g) developing tools, guidance, education and training, and raising awareness in
    accessible formats as necessary; and (h) ensuring effective monitoring and investigation of
    cases of violence and harassment, including through labor inspectorates or other relevant
    authorities. In adopting and implementing the approach referred to in paragraph 2 of this
    Article, each stakeholder must recognize the different and complementary roles and
    functions of the government, employers, and labor/workers in their respective
    organizations.
    Article 5
    With the aim of preventing and eliminating violence and harassment in the workplace, the
    Company must respect, promote, and realize fundamental principles and rights in the
    workplace, namely freedom of association, effective recognition of the right to collective
    bargaining, the elimination of all forms of forced or compulsory labor, the effective
    abolition of child labor and the elimination of discrimination in respect of employment and
    occupation, and promoting decent work. Article 6 The Company may adopt laws,
    regulations, and policies that guarantee the right to equality and non-discrimination in
    employment and occupation, including for women workers, as well as for workers and
    others who belong to one or more vulnerable groups or groups in vulnerable situations
    disproportionately affected by violence and harassment in the workplace.
    IV) SANCTIONS AND LAW ENFORCEMENT
    Article 6
    The Company is obliged to impose sanctions and legal measures against individuals or
    groups that violate the provisions of gender-based violence elimination. The company must
    impose sanctions such as: (a) a written warning 1 (first) for minor offenses; (b) issuing a
    Second/Third Warning Letter (last) for moderate offenses; (c) dismissal without honor for
    serious offenses resulting in long-lasting trauma for the victim’s recovery; (d) handing over
    to the applicable law enforcement if deemed necessary to protect the victim and witnesses.
    V) PROTECTION AND PREVENTION
    Article 7
    The Company, together with the Labor Union/Workers, makes every effort to provide
    awareness and socialization to Workers about understanding the elimination of gender-
    based violence in the workplace either through regular and periodic coaching or through
    direct dissemination of brochures, pamphlets, and campaigns to prevent gender-based
    violence and harassment in the workplace.
    Article 8
    The Company takes appropriate steps to prevent violence and harassment in the workplace,
    (a) identifying and synergizing with existing labor/worker organizations and evaluating job
    placements where workers and relevant others are more vulnerable to violence and
    harassment; and (b) taking action to effectively protect such individuals.
    Article 9
    The Company may apply existing national legal regulations and require management to take
    appropriate measures within their authority to prevent violence and harassment in the
    workplace, including gender-based violence and harassment, and specifically, as far as
    reasonably practicable, to: (a) adopt and implement, and synergize with existing Worker
    Unions and labor/workers about the impacts of violence and harassment; (b) consider
    violence and harassment and related psychosocial risks in occupational safety and health
    management; (c) identify hazards and assess risks of violence and harassment, with the
    participation of labor/workers and their representatives, and take steps to prevent and
    control them, and (d) provide workers and others with relevant information and training in
    accessible formats, about identified violence and harassment hazards and risks and related
    prevention and protection measures, including rights and responsibilities of workers and
    others in connection with policies as referred to in sub-clause (a) of this Article.
    VI) ENFORCEMENT AND RECOVERY
    Article 10
    The Company must take appropriate action to: (a) monitor and enforce regulations on
    gender-based violence and/or harassment in the workplace; (b) ensure easy access to
    appropriate and effective solutions and mechanisms and safe, fair, and effective dispute
    resolution procedures in cases of violence and harassment in the workplace, for example: (i)
    complaint and investigation procedures, and, if necessary, violation settlement mechanisms
    at the workplace level; (ii) violation settlement mechanisms outside the workplace; (iii)
    Courts; (iv) protection against retaliation against complainants, victims, witnesses, and
    reporters; and (v) legal, social, medical, and administrative support measures for
    complainants and victims; (c) protect the privacy of those involved and confidentiality, as
    far as possible and as appropriate, and ensure that obligations to privacy and confidentiality
    are not abused; (d) regulate sanctions for violations, if applicable, in cases of violence and
    harassment in the workplace; (e) state that victims of gender-based violence and
    harassment in the workplace have effective access to complaint and dispute resolution
    mechanisms, support, services, and gender-responsive recovery that are safe and effective;
    (f) acknowledge the impact of domestic violence and, as far as reasonably practicable,
    reduce its