The workers become one of important factors that affect the Company's success in maintaining business sustainability.
EMPLOYEE PROFILE [LA13]
Total number of employees in the company until the end of the reporting period was 61,154 people. This number increased compared to only 47,284 people in 2010. The majority was male who worked in oil palm plantations and processing plants, in accordance with the type of work.
The Company fundamentally provides opportunity for anyone to become workers regardless of ethnic background, religion, race or class as well as gender. The Company only set the minimum age requirement for its workers at 18 years old. Until the end of the reporting period, the Company ensures that there was no child labor or underage labor. The dominance of male employees was due to low interest of women applying for work in the plantations and plants. [HR6]
During the reporting period, there were 2,070 permanent employees who left the Company and mostly due to voluntary resignation. Meanwhile, the number of newly hired employees was 2,713 people.
REMUNERATION AND COMPENSATION
The Company provides employee benefits for an employee in the form of a monthly salary, with additional benefits and annual bonus. Basic salary for a newly hired employee is adjusted to the minimum wage set by the Government, and there are additional rice allowance, medical benefits, employee social security, as well as housing facilities, water, and electricity for employees who were working in the plantation. There is no difference of basic salary amount between male and female employees, but the total income received may vary because of other considerations, such as longer time of service and results of performance assessment. [EC5] [LA14]
As a form of compliance with Labor Law No13 of 2003 on Employment, the Company enrolls all employees in Employee Social Security (Jamsostek) program. In addition, the Company also provides non-mandatory donations and contributions, as an appreciation as well as real effort to guarantee the welfare of its employees, such as wedding donations for permanent employees and bereavement contributions that are covered by life insurance. [EC3]
LABOR UNION AND COLLECTIVE AGREEMENT
The Company guarantees the implementation of the employees rights to associate and communicate their opinions. The support is realized in the absence of restrictions for employees to form a labor union within the Company and its subsidiaries. [HR5]
The labor unions (SP) formed by the employees within the Company are SP Astra Agro Lestari (Astari) and SP Cakra Lestari. Together with the unions, the Company signed a collective labor agreement (CLA), which serves as collective reference in the industrial relations.
During the reporting period, the CLA was formally applicable as it has been registered to the Ministry of Manpower and Transmigration through the Directorate General of Industrial Relations, which corroborated by the Decree (SK) No 61/PHIJSK-PKKAD/PKB/V/2010 on CLA validity period from March 5, 2010 to March 4, 2012, and CLA for the period 2012 to 2014 has been agreed and is in the process of registration to the relevant agencies.
All employees become members of the SP Astari and SP Cakra Lestari, which is directly protected and bound by the terms set forth in the CLA. The CLA remains to be the foundation for the resolution in the event of industrial disputes with management. [LA4]
Labor Unions were also formed by employees of subsidiaries. As of the end of the reporting period, all subsidiaries have had CLA that is collectively prepared and mutually agreed upon by employee representatives in the labor unions.
OCCUPATIONAL SAFETY AND HEALTH (K3)
The Company pays great attention to compliance and implementation of occupational safety and health (K3). This is manifested, among others, by including provisions in the CLA on K3, particularly in Article 54 - 56 of Chapter IX of CLA. [LA9]
The articles regulate K3, Occupational Safety & Health Committee (P2K3) and work equipment. Inclusion of provisions on various K3-related issues in the CLA empowers the compliance to implement K3 aspects as shared responsibility for both management and employees.
The Company and employee representatives also formed a joint board in P2K3 to manage various matters regarding K3 implementation. The number of employee representation in the P2K3 during the reporting period was 168 people. [LA6]
Considering the importance of K3 implementation, the Company continuously conducts inspections to prevent and minimize occupational injuries through two forms of policy, namely:
- Minimize unsafe action
- Minimize unsafe condition
The Company always ensures that K3 provisions are complied and implemented by all parties. Therefore these provisions are regularly disseminated to every department through safety talk during morning briefing. In addition, the Company also conducts K3 campaign (safety campaign), through posters to complement warning signs on the importance of K3.
The Company's various efforts have not been entirely fruitful. During the reporting period, there were 5,087 cases of occupational accidents and five of them were fatal accidents that took the victims' lives.
The Company also pays attention to occupational health, both related to the employees and the workplace environment. Maintenance of occupational health was carried out by providing polyclinics and ambulance units. By the end of 2011 there were 43 polyclinics and 32 ambulances.
The polyclinics were located in the plantations. It serves the employees and their families through preventive, promotive, curative and rehabilitative programs. One of the preventive and promotive programs of health is an integrated service post (Posyandu) to improve the quality of expectant mothers and children's health.
For permanent employees, the Company provides medical general check-ups held once every two years. There were 25,400 employees and 76,200 members of the employees' families took part in the activities of posyandu counseling, prevention, and health inspections. [LA8]
The Company has established regulations on working hours, days off, breaks and leave, which refer to the Labor Law. A job that requires workers to work beyond normal working hours is exercised in accordance with applicable regulations and based on the agreement between the company and workers (overtime). Employees working hours are adjusted to the region and type of work, but limited to a maximum of 40 hours per week. The Company generally classifies working hours into three major groups, as follows:
- Five Working Days per week (applied at Head Office and Area Offices)
- Six Working Days per week (applied at plantations)
- Shift, applied for type of work at the plant and security
The Company gives breaks for employees, consisting of weekly days off, annual leave, long leave (every five years), special leave, and religious observance leave as stipulated in the Collective Labor Agreement (CLA). [HR7]
TRAINING AND ASSESSMENT
The Company continually conducts training to assign the employees in the appropriate position according to the skills in their respective fields. During the reporting period there were 122,801 hours of training with 8,003 participants, or an average of 15.34 training hours per participant. The types of training provided include functional techniques, management, general and certification.
So far there has been no specific training on anti-corruption and human rights. However, governance-related trainings focus on Code of Ethics and Business Conduct and Insider Trading topics, in which there are aspects of anti-corruption and human rights. [SO3] [HR3] [HR8]
Another important aspect related to the Company's efforts in developing human resources is the development of a career for every employee. Therefore employee performance assessment is regularly conducted based on the achievement of key performance index (KPI).
The Company provides equal opportunities to every employee, including local employees to develop their careers to managerial positions. The Company has never considered the background of gender, age and ethnicity, religion, race and intergroup in assigning a person to a certain position. Appointment and determination of position are based on the results of the assessment taking into account the skill and competencies of the work. [HR4][EC7]
In accordance with Company regulations and collective labor agreement, the employees age of retirement is 55 years old. In particular, the Company pays attention to employees who are entering retirement by providing training for them.
The training is intended as a preparation for post retirement, those who retire can still continue their activities to earn a living. During the reporting period, there were 31 employees who attended training for retirement. However, if the Company plans to make structural changes, there has been no obligatory notification for employees within a certain period of time. [LA5][LA11]