We Are Not Machines

1. We Are Not Machines

2. “Factory managers abuse and harass us because they think it will increase our productivity. They don’t understand that people work better when they are treated in a way that respects their needs. You should do research into that. Maybe then they will stop treating us like machines. All you need to do is turn on a machine and it works automatically. Humans cannot work like that. We are not machines.” • **Translation of comments by Nike worker. Focus group discussion, 21 January 2002**

3. Summary • Low Wages: They earn full-time wages of approximately $US56 a month and report that recent increases in legal minimum wages have not kept pace with dramatic increases in the cost of food. • Freedom of Association: Workers have reason to fear that active union involvement could lead them to be dismissed, jailed or physically assaulted. • Working Conditions: There has been some reduction in the physical and psychological pressure placed on workers, but this needs to be set against ongoing practices which fail to respect their health and dignity.

4. Right to Freedom of Association • The arrest, imprisonment and extended trial of Ngadinah Binti Abu Mawardi from the Panarub factory (Adidas) has raised workers’ fears that union activity could endanger their liberty. • At the Nidomas Gemilang factory (Nike and Adidas) threats of violence against outspoken workers and uncertainty surrounding the attempted murder of Mr. Rakmat Suryadi has generated anxiety that union involvement could endanger workers’ safety. • There has been a reduction in some forms of discrimination against members of independent unions in several factories, but even in these factories workers allege that factory owners have discriminated against active unionists when firing workers.

5. The PT Nidomas Gemilang Factory in Serang, West Java • PT Nikomas Gemilang employs more than 24,000 workers and produces for both Nike and Adidas. • There is a close relationship between the official and unofficial structures of power, and that government officials commonly hire local gangs to enforce their will. • Hired thugs known as preman, have been employed to intimidate and harass those involved in organizing industrial action at Nikomas. • Mr. Rakhmat Suryadi, a union official at the factor, was attacked by a number of men with machetes in front of the factory as he made his way to work. He was not robbed and nothing was said to him. The attack however did take place one month after he spoke out against the labor abuses in a local newspaper.

6. The PT Panarub Factory in Tangerang, West Java • In September 2000 Ngadinah’s union organized a strike that was joined by most of the 8000 workers in the factory . The workers were seeking to be paid for overtime at the legally-mandated rate; to be allowed to take the (unpaid) menstrual leave which they are allowed under Indonesian law; and to receive higher allowances. • In April 2001 Ngadinah was arrested for inciting others to break the law and unpleasant conduct towards others. • Her arrest and detention has raised concerns among international human rights groups because of the vagueness of the charge against her. • On August 30 she was found not guilty. Upon returning to work she was moved to the Human Resources Department at the factory. She strongly believes she has been put in this section in order to separate her from other workers and prevent her from encouraging them to become involved in union activity.

7. Some Steps Forward, but Active Unionists Still Have Reason to Fear Unfair Dismissal • There had been important improvements in terms of respect for workers right to freedom of association. • Union organizers are usually allowed to hand out information about the union to other workers, but the factories censor what is distributed. • The practice of constantly moving independent union leaders from one section of the factory to another in order to unsettle them has also ceased. • Unfortunately, even in these factories workers remain afraid that joining an independent union will put their jobs in danger.

8. Respect for the Right to Freedom of Association • Prior to 1998, Indonesian workers were only allowed to join SPSI, the official government union formed during former President Suharto’s dictatorship. This union did little to help workers. • Since Suharto left office in 1998, independent unions have been legalized in Indonesia.

9. Wages so low can hardly support herself. Lived in factory dorm so she could send money home. Constantly cursed & yelled at by team leader. In 1998, a shoe was thrown at her because couldn’t achieve production targets. For the same reason, forced to stand in front of factory line & then wash factory floor. Beginning 2000 – Attended workers’ meeting & refused to speak about it. Nearly fired as a result. Locker broken into & notes stolen. Never attended another meeting . Husband & her have to work lots of overtime to cover living costs. Combined standard monthly wage less than living costs. Case Study: Leily’s Story

10. Can only afford to see child once every four months. October 2000 – friend forced to work even when sick. Ambulance only called when fainted. Never allowed menstrual leave or 12 days of annual leave. Have been improvements recently – but hopes for: All kinds of violence to end & supervisors to be punished. Raised wages. Married workers dormitory. Childcare & transport allowance. Allowed to have workers organization. Leily’s Story - Continued.

11. Nike’s code of conduct requires one day off in seven & no more than 60 hours per week. However, in the Nikomas Gemilang factory who refused overtime subject to punishments (warning letters, clean toilets, shouting, standing in front of line). January 2002 – working a lot less overtime & hours vary between 45-60 hours per week, which is well down from previous, i.e. in July 2001 it was not uncommon to see 77 hour work weeks. Likely due to order reductions & also to Nike & Adidas enforcing policy. Working Hours

12. Working Hours • FFactory managers announced overtime was voluntary & overtime can be avoided by going to the personnel manager. • CContacting the personnel manager hasn’t been effective because workers don’t want to be targets. • PParadox with lower overtime levels is that wages are so low that workers are desperate to work as much as they can. • OOvertime income is considered vital to cover basic needs. • “”if you do not get your overtime, you will get very little.” • WWorkers who work less than 60 hours per week are living in extreme poverty

13. Wages • NNike report in February 2001 that most workers in factories were paid at or above official regional minimum wage ($32.50). • IIn most Indonesian provinces, wages considered below cost of living for a single male. • WWith overtime & bonuses included, salaries rose to $54 and $70.60. • WWorkers continue to feel that wages are inadequate. • JJanuary 2002 – wages in most Indonesian provinces rose as much as 38% (base wages rose to $56 and $58.50) to help with reductions in government fuel subsidies. • PPrices have risen faster than wages – fuel rose 22% in Jan.2002, rice rose four cents per kilo, palm oil rose seven cents per kilo., eggs rose twenty cents • TThese price increases have negated any wage increases.

14. Exposure to Dangerous Chemicals • 1997 Report conducted by Nike was leaked to the New York Times • Up to 177 times the Vietnamese legal limit of toluene • Toluene can cause central nervous system depression, damage to the liver and kidneys and eye irritations • Nike introduced “water based” solvent • May 1998 – Nike makes a commitment to safety • Long road ahead

15. Acute Injury Hazards • The need for steel toe boots • Dangers include amputation and severe crushing • Nikomas claims that boots are too expensive • Finger Loss • 5 to 6 worker lose a finger every year, an improvement for the 2000 report • Not Willing to open us safety records

16. Appropriate Medical Care in Factories • Workers who seek medical help face many obstacles • Women seeking menstrual leave • Ability to take sick leave has improved

17. Exposure to Heat and Noise • Workers claim heat and noise levels cause health risks • Further research needs to be done to conclude if standards are being met.

18. How Can Dangers Be Alleviated? • Epidemiological surveillance of the workforce • Careful worker training • Industrial hygiene monitoring • Involvement of workers in management- labor-safety committees • Appropriate medical care be available at factory clinics

19. Verbal Abuse • A September 2000 report cited verbal abuse among Indonesian workers as “common”, insults included “dog”, “pig” and “monkey” • 30.2% of Nike workers had experienced verbal abuse; 56.8% had observed it • They defined verbal abuse as “harsh words, angry shouts, and words that humiliate…”

20. Verbal Abuse • As of January 2002, workers have reported a reduction in verbal abuse, but are still berated when working too slowly • Most noted that their supervisor’s anger resulted from increased pressure “from above” • With few exceptions, there was no other evidence of physical violence against workers

21. “Security” and Intimidation • There is a long history of military dictatorship in Indonesia; even with the fall of the dictatorship, the military still holds considerable power • Soldiers are often employed by the factories as “security” during periods of labor unrest

22. “Security” and Intimidation • As recently as July 2001, workers noted military personnel in the factories; they noted “cruel and unprovoked acts of violence” • By January 2002, military personnel were officially out of the factories, to go no further than the front gates

23. Sexual Harassment According to Nike-funded Global Alliance report, Feb. 2001

24. Report • 7.8 % of workers reported receiving “unwelcome sexual comments” • 3.3 % reported being “touched inappropriately”

25. Improvements • Supervisors & managers have received training to discourage sexual harassment • Ex: Nikomas Gemilang factory fired supervisors accused of sexual harassment

26. Reality • Most believe sexual harassment is NOW less of a problem than in the past • However, workers are scared to report an incident for fear of being fired

27. Annual Leave Like Cutting Bamboo report

28. Policies on Leave • Workers allowed leave on Muslim holidays • BUT very hard to take any other leave (even though allowed 12 days each yr.) • Line supervisors put pressure on workers to leave on other days than relig. holidays

29. Worker’s Perspective • It’s become easier to claim their legally mandated leave • BUT still significant problems • Must get permission from their supervisors • They usu. refuse unless they find someone to take their place • Must complain to “corporate responsibility” or “personnel”

30. Effects • Can lead to victimization by factory supervisors • Workers are extremely wary of complaining

31. RESULT • Many workers miss out on MUCH of their annual leave!