Benchmarking CBA PT. Ricky Putra Globalindo – ACV-CSC International Asia

Profile of PT. Ricky Putra Globalindo

Established in 1987, PT. Ricky Putra Globalindo Tbk (IDX: RICY) is a multinational company that produces textiles headquartered in Jakarta, Indonesia. This company was founded in 1987. This company produces various kinds of clothing materials.

The company is domiciled in Citeureup-Bogor, West Java with factory locations in Citeureup-Bogor and Cicalengka-Bandung. Meanwhile, the Company's representative office is located on Jl. Lio II Rice Fields No. 29-37 West Jakarta. The company began commercial operations in 1988 and its products are marketed both at home and abroad.

This company has 5 business fields, namely:

1. Apparel can be grouped into 3 main products, namely:

A. Men's underwear products consisting of 7 main product segments to serve the domestic market with the brands Ricky, GT Man, GT Ladies, Ricsony, GT Man Kid, GT Kid and GTman Sport. Each product is divided into several types which are differentiated based on model, color, type of raw material and packaging.

B. Clothing products consisting of internationally licensed clothing and own brands. To reach a wider market development, control a larger area in department stores and support production capacity, the Company produces internationally licensed clothing including Transformers, Pokemon, Barbie and Despicable Me. The variety of clothes depends on trends because the clothing styles are segmented as children, teenagers and adults, both women and men.

C. Underwear and apparel products specifically ordered for foreign and domestic market buyers such as sleepwear, women's underwear, T-shirts and polo shirts with the segmentation of children, teenagers and adults, both women and men.

2. Knitting thread consisting of cotton knitting thread and TC knitting thread in various sizes.

3. Knitted fabric products, under the banner of PT Ricky Tekstil Indonesia in collaboration with third parties for dyeing knitted fabrics (raw materials).

4. Special export apparel production sector under the companies PT Ricky Garment Exportindo and PT RT Mahkota Globalindo.

5. The restaurant business sector is under the auspices of PT Ricky Citra Rasa.

PKB-RPG-2021-2023 Unduh

CBA ANALYSIS

PT. RICKY PUTRA GLOBALINDO TBK

Best & Bad Practices Regarding Freedom of Association

Best Practice:

1.1. Article 6, Clause 2: Employers acknowledge that Labor Unions / Labor Associations have the right and authority to operate and organize themselves, according to the organization’s articles of association.

1.2. Article 6, Clause 3: In matters related to employment/employees and their issues, the Company involves the labor union in efforts to resolve them.

1.3. Article 6, Clause 4: Employers grant permission to the officers of the Labor Union/Labor Association to carry out organizational duties during or outside working hours, with the Labor Union/Labor Association providing prior information to the Management before requesting dispensation.

1.4. Article 7, Clause 5: Employers and Labor Unions/Labor Associations uphold mutual trust, respect, and respect each other’s authority, and do not interfere in each other’s internal affairs.

1.5. Article 7, Clause 6: Employers and Labor Unions/Labor Associations prioritize consensus through consultation in the event of disputes.

1.6. Article 8, Clause 1: Employers must grant dispensation to officials, representatives, and members of the Labor Union/Labor Association to carry out organizational tasks and manage the organization.

1.7. Article 8, Clause 3: The chairman and secretary are given full rights to manage the organization.

1.8. Article 8, Clause 4: Supervisors are prohibited from obstructing organizational activities.

1.9. Article 9, Clauses 1 and 2: The Company provides suitable space for the Labor Union/Labor Association office as a venue for activities along with its facilities such as desks, chairs, cabinets, whiteboards, AC, Airphone, photocopying facilities, up to dispensers and drinking water.

1.10. Article 9, Clause 3: The Company provides transportation facilities for Labor Union/Labor Association activities according to the availability of vehicles in the company.

1.11. Article 9, Clause 4: The Company assists Labor Union/Labor Association activities by providing special meeting rooms or larger rooms and/or company equipment as needed in the activities carried out by the Labor Union/Labor Association.

1.12. Article 9, Clause 5: The Company provides bulletin boards in every department.

1.13. Article 11, Clause 1: The Company assists in deducting the membership fees of Labor Union/Labor Association members through the COS system (Check off system).

Bad Practice:

1.14. Article 9, Clause 6: In the event the Labor Union/Labor Association intends to post an announcement, bulletins, and other materials, the Labor Union/Labor Association must inform the company management through the personnel department beforehand.

Best & Bad Practices Regarding Wages

Best:

2.1. Article 14, Clause 2: In the implementation of overtime work, the company must inform the workers in advance, and they must sign the Overtime Work Agreement (Surat Kesepakatan Kerja Lembur) at least one day before the overtime work.

2.2. Article 14, Clause 4: Specifically for workers with duties as Security Units (guards), working hours are separately regulated based on a joint decree by 3 Ministers (Minister of Manpower, Minister of Home Affairs, Chief of Indonesian Police).

2.3. Article 14, Clause 5: Pregnant female workers are not allowed to work at night or work overtime.

2.4. Article 17, Clauses 1, 2, 3, and 4: The wage system uses a wage structure and scale, considering the Minimum Wage provisions.

2.5. Article 19, Clause 2: For workers whose wages are above UMK, the company will adjust the wage without reducing the existing wage components.

2.6. Article 20: The wage for probationary workers is at least as low as the minimum wage set by the Governor.

2.7. Article 27, Clause 2: In the event a worker is detained by the authorities not at the employer’s complaint, the employer is not obliged to pay wages but must provide assistance to the worker’s dependents, with the following provisions:

a. For 1 dependent, 25% of the wage.

b. For 2 dependents, 35% of the wage.

c. For 3 dependents, 45% of the wage.

d. For 4 or more dependents, 50% of the wage.

2.8. Article 27, Clause 3: Assistance as mentioned in the above paragraph is provided for up to 6 months from the first day the worker is detained by the authorities.

2.9. Article 27, Clause 4: In the event a worker is detained by the authorities at the employer’s complaint and during the notice period has not been given, the employer must pay the worker at least 75% of the wage, effective for up to 6 months from the first day the worker is detained by the authorities.

2.10. Article 27: In the event after the judicial process, the concerned worker is found not guilty, the employer must provide full wages to the worker and re-employ the worker.

2.11. Article 33, Clause 3: Contract period wages are at least equal to the minimum wage of the District/City.

2.12. Article 36, Clause 4: The rights of workers transferred are adjusted to the new department/task but must not be lower than the rights previously obtained by the worker.

2.13. Article 39, Clause 11: Workers who, as members/officers of the Labor Union/Labor Association, do not work due to organizational duties, are entitled to full wages.

2.14. Article 40, Clause 5: The company may allow workers to combine annual leave with official leave.

2.15. Article 43, Clause 2: The company grants permission to female workers who want to take menstrual leave by informing via letter/telephone.

2.16. Article 53, Clause 4: Workers who resign one month before the holiday are entitled to full holiday allowances as prescribed.

2.17. Article 75, Clause 3: The provisions for severance pay and benefits are beyond the provisions of the law. In such cases, the company is not obliged to provide severance pay and benefits unless the worker has worked for at least 5 (five) years, in which case separation pay/awards will be given based on the following duration of employment:

a. 5 years or more but less than 8 years, equivalent to 1 month’s salary.

b. 8 years or more but less than 10 years, equivalent to 2 months’ salary.

c. 10 years or more but less than 13 years, equivalent to 3 months’ salary.

d. 13 years or more but less than 15 years, equivalent to 4 months’ salary.

e. 15 years or more but less than 18 years, equivalent to 5 months’ salary.

f. 18 years or more but less than 21 years, equivalent to 6 months’ salary.

g. 21 years or more, equivalent to 7 months’ salary.

2.18. Article 79, Clauses 1, 2, and 3: Workers whose employment is terminated due to efficiency, the company must provide their rights in accordance with the provisions of the Job Creation Law No.11 of 2020 regarding employment.

Best and Bad Practices Regarding Social Security

Best: Participating in both health and employment social security programs such as BPJS Kesehatan and Ketenagakerjaan in accordance with legal provisions.

Bad: Not participating in the Unemployment Insurance program.

Best Practice Regarding Gender

Best:

4.1. Article 49 on Gender-Based Violence: Gender-based violence is defined as harmful actions committed against a person without their consent based on gender roles.

Clause 1: Gender-based violence prohibits all forms of sexual violence in the workplace, including acts of indecency, coercion, or solicitation, as well as encouraging other workers to engage in immoral acts that violate morality.

2. Prohibits all forms of physical violence, abuse, and employing workers beyond the maximum time limit.

3. Prohibits all forms of social and economic violence, where violence results in economic neglect and impoverishment of workers without reducing their rights.

4. Prohibits all types of emotional and psychological violence, persecution, gross insults, yelling, or making threats, intimidation, and transferring employees to uncomfortable places resulting in the worker leaving or resigning.

5. The company, assisted by the labor union, provides knowledge about the contents and dangers of GBV.

Bad:

a. Article 22, Clause (1): The company provides condolences to employees, as follows:

a. If an employee passes away, they receive assistance of Rp. 500,000 (five hundred thousand rupiahs).

b. If an employee’s husband passes away, they receive assistance of Rp. 400,000 (four hundred thousand rupiahs).

c. If an employee’s wife passes away, they receive assistance of Rp. 300,000 (three hundred thousand rupiahs).

d. If an employee’s child passes away, they receive assistance of Rp. 150,000 (one hundred and fifty thousand rupiahs).

e. If an employee’s parent passes away, they receive assistance of Rp. 100,000 (one hundred thousand rupiahs).

*There is a difference in the amount of assistance provided by the company between male/ husband and female/wife employees.

b. Article 37, Clause 2: The truth of menstruation is checked by designated officers in each department or personnel staff.

**Best and Bad Practices Regarding Occupational Health and Safety (K3), including Climate Change and Just Transition**

The regulations regarding K3 are detailed in Articles 57 to 61 but still refer to applicable laws.