Improvements in 2018 for the new Indonesian Social Security

2018 saw the further implementation of the reformed National Social Security System and the expansion of the social security coverage, including the health insurance. At multiple moments KSBSI invited officials from the Health Insurance Body and the Social Security Body to discuss the various difficulties with the implementation of the different schemes, such as the contributions to be paid by employers and by workers. Nevertheless there were some breakthroughs:

• hospitals are now obliged to accept any patient and to ask for reimbursement for the expenses from the Health Insurance Body rather than from the patients themselves. 
• The policy on ‘Coordination of Benefits’ between the public social security and private company schemes has been clarified now.

Indonesian migrant workers get access to the regular social security schemes
The new Indonesian Migrant Workers’ Law for which the partner organisations advocated came into effect in November 2018. This law gives more and better protection to Indonesian migrant workers going abroad to work, mainly by making placement, recruitment and protection of migrant workers a responsibility of the state. A new regulation stipulates that migrant workers can have access now to the regular work accident scheme, the death insurance and to old age insurance (a kind of retirement savings). The actions of KSBSI and SBMI in 2018 focused on the dissemination of the new law to the migrant workers and on the negotiation of and advocacy for village level and district level regulations,  needed to execute the law.

Negotiating wages in Indonesia

South Sumatra is one of the regions where the development of KSBSI is quite strong, with 5 federations who have a total of 15.210 members. The monthly provincial minimum wage in South Sumatra in 2018 was 2.600.000 Rupiah (± 165 euro) and increased to 2.800.000 Rupiah ((± 176 euro)  in January 2019. In Indonesia, the majority of workers receive wages that are composed of the provincial minimum wage and a fixed allowance. This means that there is no difference in wages between workers who have a work experience of less than one year and wages of workers who have a tenure of more than one year. To increase the income of workers in South Sumatra, KSBSI is very serious in advocating for increases in provincial minimum wages. With the existence of a wage scale structure, it is expected that there will be an increase in wages and there will be rewards for workers who work more than one year. This year there are 12 companies that have handed over the structure of the wage scale to the South Sumatra labour agency.

Mr. Ali Hanafiah was born in Palembang, on 8 July 1969. He graduated from STIH Sumpah Pemuda University in 2010. He is the regional coordinator of KSBSI in South Sumatra. Before he was the chairperson of KSBSI at plant level for 2 years and chairperson of the branch board of NIKEUBA (KSBSI’s service sector federation) for 12 years.  Currently he is a member of the provincial wage council and vice chairperson of the tripartite social dialogue at province level as a representative for the workers.

Political, economic and social context
In 2018 Indonesia’s economic growth tended to be stable at about 5%. Increasing religious sentiment, abused by Islamic fundamentalists, stirred up fears that conservative parties would claim victory in the regional elections, thus also influencing the national elections in April 2019. Identity and religious politics risk to divert attention from the agenda of economic development, prosperity and social welfare that is being promoted by the current Indonesian administration under President Joko Widodo. On 28 September an earthquake and tsunami hit Palu and Donggala in Central Sulawesi, killing 2.113 and injuring 4.612 people. Both KSBSI and SBMI provided immediate assistance to their members in the area and the families who became victim of the tsunami.

Minimum wages, wage scale structure and social security
Since presidential regulation 2015/n°78 was adopted, yearly minimum wages in Indonesia (set at provincial or district level) can only be increased by inflation and growth of gross domestic product. Based on those two criteria the growth of the provincial minimum wage for 2019 was fixed at 8,03%. While KSBSI is not in favour of Regulation 2015/78, as it prevents the trade unions from fully freely negotiating minimum wages such as foreseen by the ILO Minimum Wage Convention, it does not believe that in the current political constellation the regulation can be overturned in the short term. Currently KSBSI focuses in its training for local union leaders, activists and members on the implementation of the wage scale structure, as October 2017 was the deadline for companies to register their wage structure at the Labour Department. However, most Indonesian employers are still not aware about their obligation to determine a structure and scale of wages in the company taking into account the class, position, period of employment, education level and competence of the employees. Seen the limitations that have been imposed to the regular minimum wage negotiations, the trade unions see the wage scale structure regulation as a way to differentiate wages at company level, so that at least at plant level it will be possible to still negotiate higher wages. The workers should be informed of the wage scale structure in their company.

India in numbers in 2018: over 730.000 Indians were reached through...

For labour standards:

• Over 450.000 people (53% women and 33% youth) are better aware of their labour rights through campaigns and outreach.
• Trade unions organized over 80.000 workers (70% women and 38% youth).
• Over 12.000 people, 90% women and 50% youth, received basic training in labour standards, social security and health. 
• Over 11.000 Indians, 85% women and 40% young workers, received advanced training (of leaders or of Trainers).
• 655 workers, almost all women and 60% young workers, benefited from legal assistance .
• Advocacy: Over 135.000 people (55% women and 32% young workers) were mobilized at grassroots level (ex. demonstrations, petitions…)

India Partners: CWM-I, AREDS, NDWM, NDWF, CFTUI Budget 2018: 260.843euro
Donor: DGD, Brussels Region, Province of West Flanders
Programme: 2017-2021

Mumbai construction workers share their challenges

During a meeting with 15 male construction workers in Mumbai, they shared some of their challenges.

With only one of them born in Mumbai, all the others had moved from the country side looking for work and half goes back home for over three months a year. This is very typical for workers in the informal sector, with people working half the year on fields and half in construction, mostly getting paid per day in both sectors. One said: “I started working in 1994 and have never had a longer term contract, so I don’t get any pension now that I am too old. My daughters support me, working as domestic workers, though one of them is handicapped.” Nine of the 15 started working before they were 18 years old, several before they were 14 as helpers and one even started when he was eight years. Though the legal minimum wage for them is fixed at 25.000INR or 320EUR, nine of them make less. Only one is not a day worker: “I used to work in a garment factory, where I made 18.000INR or 230EUR monthly, but after the union demanded an increase of pay, the management closed the factory and relocated it to another state.” Daily wages are low and women make at least 20% less. “In part, it is also because there are still many cases of bonded labour, people who are in debt and so agree to work for less, which drives down the wages.” All of them were in debt, not to banks but to small private moneylenders who often charge exorbitant interest rates. “We have no access to social welfare schemes, because you have to be a registered worker for at least 90 days at the same company, and so day workers like ourselves are effectively excluded.” 

These stories illustrate why the five WSM India partners focus on a decent living income for the informal sector, especially for three sectors: the domestic, agriculture and construction workers.

Prevention is better than the cure (AREDS)

I have been working as a health worker with AREDS for the past 18 years. I have two daughters and my husband works in a trade union sector with AREDS for unorganized workers. I started the work because of the support from my husband. My husband believes that, if you approach things with a positive state of mind, we can change things, we can do great things. That positive energy pushed me to go work in the same field. Now, I work with pregnant women. I try to ensure continuous follow up and a trust relationship with each family. We’re not there just for one or two months, we follow the same family for over five years. It means we sort of become members of that family. I provide classes to the adolescent girls, where we talk about diseases and hygiene and sexual and reproductive health. Here, there is still a tradition that says that women can’t go outside if they are menstruating or be in a group. So there are still many misconceptions to educate people about. – Dhanalakshmi, AREDS

Access to health is one of the two priority areas for AREDS in the south of India and it believes prevention is very important. Almost 3.800 people (78% women and 80% adolescents) attended sessions on basic health, hygiene and reproductive health issues. While developing alternatives on a local level, AREDS increased awareness in 2018 of over 8.000 members on preventive health practices, water and environment sanitation, breast feeding, organic food growing and consumption, and on the uses of native medicines.

Domestic workers in India stand up for each other and better working conditions (NDWM/NDWF)

 Rekha, a 34 year old domestic worker was accused of stealing jewelry from an employer she had left a month earlier. After the complaint, she was repeatedly called to the police station and harassed to return the jewelry, though she claimed her innocence. As a member of NDWM, she took the matter up with her trade union and the members drafted filed a complaint against the employer for false allegations. Though initially, the police was reluctant to accept the complaint, they were eventually pressured into recognizing there was no proof for the allegation from the employer. The employer also apologized for acting in haste as it could have endangered the life and work of the domestic worker. – NDWM

The National Domestic Workers Movement (NDWM) and its Federation (NDWF) gather over 50.000 domestic workers monthly in their neighbourhoods to discuss common problems. They learn about their labour rights, agree on common rates but also show solidarity or find legal aid if one of them is facing problems, ranging from unfair dismissals to domestic abuse. Strength comes from unity and they ensure the collective voice of domestic workers is heard by employers and authorities.
This collective voice also matters for policy changes: NDWM and NDWF mobilised over 150.000 domestic workers in 2018 to demand to better wages and social security coverage. The advocacy teams at central and state level also met with 66 Members of Parliaments and 77 officials to elicit support for their cause.

To illustrate some of the achievements regarding domestic workers in 2018:

• 887 domestic workers received social security and social welfare benefits, with over 3,8 million INR or almost 50.000EUR disbursed.
• After nearly two decades of persistent campaigning by NDWM and like-minded organisations, the Tamil Nadu Government established a minimum wage for domestic workers. Though this was a great success, the fixed rates were disappointingly low (39INR or 50Eurocent per hour). 
• Domestic workers are especially vulnerable to abuse by their employers. In an effort to promote zero tolerance for violence at the workplace and at home, several training programmes were conducted in all states about legal remedies and encouraged to voice any problems faced.
• As alternative income generating activities, cooperatives are still being initiated with the support of NDWM and NDWF in Maharashtra, Bihar, Jharkhand and Tamil Nadu. As this is still a relatively new concept, domestic workers need time and coaching regarding the functioning and benefits of cooperatives.

Bangladesh in numbers in 2018: almost 600.000 people reached through...

For labour standards: 167.604 garment workers (60% women and 68% youth) with:

• 157.550 garment workers (60% women and 70% youth) are more aware of their rights through campaigns and public outreach;
• Almost 7.000 garment workers are newly organized, received basic or advanced training or were mobilised for advocacy to support demands to increase the minimum wage, 
• 3.200 received legal assistance from NGWF. 

118 people got vocational skill training through GK, and they have raised awareness regarding women driving.
Over 180.000 workers were maaware of their social security rights and 30 got a basic training.
Almost 200.000 people were involved to improve their access to health because of GK, with 45.000 people getting direct medical attention.

Partners: NGWF, GK, OHS Initiative, BSPAN               
Budget 2018: 100.000€
Donor: Own WSM funds, OKRA
Programme: 2017-2021

Occupational Health and Safety training trickling down in Bangladesh

Another aspect of Bangladesh to highlight is the national networking or synergy.  As in other countries, WSM partners are offered the possibility to jointly develop services or lobby. From 2016 till 2018 part of the resources were invested in the Occupation Health and Safety Initiative, a “train-the-trainer” course which equips participants with the information and materials to put on their own training at the grassroots level with workers, community members, and members of their organizations.

A 2017 training participant from the public health organization Gonoshasthaya Kendra (GK) has conducted many grassroots workshops in the past on personal hygiene and first aid.  Based on last year’s 20-day ToT series, he has added occupational health and safety issues to his presentations so they now better address the reality of the people GK serves. Since last November, he has reached 800 people through his base-level public health and occupational health workshops. 

From 2019 onward, they will invest in the Bangladesh Social Protection Advocacy Network (BSPAN), a newly created multi-actor platform which gathers also the Bangladeshi AMRC partners.

Health Insurance Scheme for garment workers from GK also supported by European buyers (BAN18 - GK)

Dulali, 25 years was born outside of Dhaka, near the border with India. When she was 12, a marriage was arranged for her. With her husband, also a garment worker, she has two children, 7 and 3 years old, all living in one room. While she initially stayed at the house, she started working as garment worker two years ago, because she wanted to add to the family income. She pays 20€ for rent, which represents 25% of her salary. She has opened a bank account, on which she deposits half, but the other half of her salary she gives to her husband. She gave her testimony at the GK medical center in Panisail, where she came for pain killers since her appendix was still painful after it had been removed at the GK Hospital. This operation was covered by her health insurance with GK to which she subscribed over a year ago, while in a private clinic it would have cost at least 300€. She roughly estimated that through the health insurance, she has saved at least 500€ during the past year.

WSM partner, Gonoshasthaya Kendra (GK) or the People’s Health Center is the second largest health provider after the Bangladeshi government. While it initially focused on the rural areas, GK has included garment workers in the urban areas since these are also in need of support for their access to health. GK has adapted its health insurance scheme to garment workers, with contributions coming from the worker but also from the employer or the retailer in Europe, like the French supermarket chain Auchan which covers 20.000 garment workers (link).

Though OHS in Bangladesh improved, wages did not (NGWF)

 Ms. Sufia is 27 years old and works as a sewing Operator at Jamuna Apparels in Dhaka since 2014. Over the four years she worked with honesty and dedication. In July 2018, her Manager threatened and insulted her, and forced her to sign a blank sheet of paper. She was dismissed without respecting the legal procedure. Ms. Sufia was devastated and at a loss as to how to continue providing for her family. As she was a member of NGWF, she asked help to get her job back or at least compensation. NGWF sent a legal notice to the factory management which didn’t receive any reply. NGWF filed with Ms. Sufia a case at the Labour Court and end of September 2018, a settlement was reached which entitled Sufia to several benefits, including for her termination, amounting to a total amount of around 1.000€. She used this to buy a cow and her husband opened a tea shop, providing her family with alternative income.

Though the health and safety aspects have improved in Bangladesh, the general working conditions haven’t improved, on the contrary. After five years, the minimum wage for garment workers was increased from 45€ to 70€, way below the requested 150€ and largely insufficient because it doesn’t even cover inflation and lower than neighboring countries like China with 150€. Hence, the National Garment Workers Federation (NGWF) keeps organizing: membership went up with 21%, 74 new unions were registered at factory level in recent years and NGWF managed to obtain over 150.000€ for garment workers through arbitration. No meagre task as NGWF thus accounts for over 60% of the total compensations paid.

Nepal in 2018 in numbers: over 400.000 people reached through:

For labour standards:

• 133.781 members (33% women and 38% youth) are more aware of their rights through campaigns and public outreach
• 80.995 members (31% women and 10% youth) are newly organized by becoming member of a trade union organization or an association defending workers’ rights
• 150.758 members (13% women and 7% youth) receive basic training 
• 400 members (35% women and 30% youth) receive advanced training (of leaders or of Trainers)
• 200 members (20% women and 10% youth) benefit from legal assistance
• Advocacy:

1. Mobilization: 35.000 people (30% women and 25% young workers) are mobilized at grassroots level for political action (ex. demonstrations, petitions…). 
2. 407 policy makers and political decision makers are lobbied for proposals regarding Social Protection and labour standards.

65 people got vocational skill training.
Over 5.000 workers were made aware of their social security rights and 30 got a basic training. 300 policy makers were met to make the regulations regarding social security more inclusive.

Nepal Partners: GEFONT, NTUC, ITUC-NAC
Budget 2018: 85.487 Euros
Donor: DGD, Programme: 2017-2021

Organizing Home Based workers in Nepal in 2018

Ms. Gayatri makes and sells plates made from leaves in one of the most iconic places of Kathmandu, Pashupatinath, a temple where deceased are incinerated. “I came to this area about 10 years ago because it became impossible to continue farming where I lived, since agricultural land became scarce in the valley. I don’t know how to read or write, but I am a strong believer, so I wanted to be near to this temple and approached the trust which manages the temple. With my colleagues, we make plates by folding leaves together, small tumbler and bowls. We sell these plates for 10NPR or 10 eurocent. Since a bundle of leaves costs us 30NPR or 30 eurocent, I only make about 110 to 200NPR (1 to 2EUR) per day. My fingers are getting very painful because of the constant folding of leaves, but since we are self-employed, it is very difficult to get medical schemes for treatment. The earthquake damaged the room where we stored the leaves though and still hasn’t been renovated, so we have to keep our leaves outside, where they are exposed to the weather or dirt. As a small trade union affiliated to Home Workers Union of Nepal (NTUC), we have to defend our trade, because the temple is considering to outsource this practice, which would mean we would lose our income.”

NTUC, traditionally a more white collar trade union, focuses more and more on the informal sector and home based workers, using vocational skill training to organize especially women.

These stories illustrate the exemplary work done by WSM partners, the trade unions in Nepal. One of the rare countries in South Asia where the trade unions work closely together and through their unity managed to pass lobby government and employers to pass important legislation regarding labour standards and social security, now also integrating the informal sector.

Social Security Coverage for all Nepali workers

Another major issue we have been working on with WSM support is social protection, where we were able to draft a position paper on behalf of all the trade unions, which was used as the main tool while bargaining with the employers and the government, and that I think led to a milestone for social security in Nepal.  Ramesh Badal, GEFONT and Steering Committee member for Nepal.

New historic social security legislation was passed in July 2017, after 18 years of lobbying by the trade unions, WSM partners. A universal social security bill was passed which has paved the way for the government to four main social security schemes. For the very first time, all those working in formal and informal sectors will be covered by unemployment, maternity, health, accident, old age and disability benefits. Workers will contribute 11%, while employers 20% and the government will ensure the management of the system. The 27th of November was declared National Social Security Day, to be celebrated yearly and offering an opportunity to yearly remind the government of its now very public commitment. And of course, WSM partners as trade unions gathered many of their members across the country to celebrate and inform workers of these new rights, and they'll be there to help ensure the government rolls out all these schemes and doesn't just stop at these four basic schemes.

Young trade union leaders are not the future, they are today's leaders! (GEFONT)

Bikey Shrestha is a young taxi driver from the transport federation affiliated to GEFONT:

 “I am a young leader, but GEFONT has invested a lot in training us so we could take part in collective bargaining. The Nepali government recently imposed an Education Qualification requirement, which meant that taxi drivers, besides their driving licence, had to have studied until 16 years (finished class 10). Most taxi drivers currently don’t have this level of education, so it would have meant many would have lost their jobs or were at risk of being imprisoned. Our trade union played a vital role to dismiss this requirement, through the negotiations with the authorities, after we submitted a Policy Letter of Memorandum to the Traffic Police. We also managed to increase our salaries to 3750 NPR (27,2€) per month. However, we still haven’t manged to ensure the full implement of the Social Security Law, which is our next priority. Meanwhile, we have started a solidarity fund, to which all taxi drivers contribute and so when one of us has an accident, they can get some financial support.”

GEFONT dedicated the WSM support to organizing young workers and equipping them with leadership skills. Based on examples from brick factories in Bhaktapur and for transport sector, it seems Collective Bargaining Agreements (CBA) are what young workers feel has the most important impact, as it improves the lives of not only their members, but of all workers. One of their important messages was that young leaders aren’t the leaders of tomorrow, they should be leaders today! Young workers shouldn’t have to wait for positions to be given by the current leadership, but should demand and take up leadership positions now already, as young workers have specific issues and face articular challenges (internships, lack of permanent contracts, more at risk for sexual harassment etc.).

The main achievement through the WSM support is that GEFONT was able to organize the young workers within the GEFONT rank and file. Ramesh Badal, Steering Committee member for Nepal