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From Contract to Permanent Work: Victory at PT Cussons Indonesia

20 November, 2011

The union representing permanent and contract workers at PT Cussons in Tangerang, Indonesia, has managed to negotiate permanent positions for 110 contract workers.

Since the beginning of 2011, the union has been active in training contract workers and, out of a total of 200 contract workers, 118 joined the union. PT Cussons management refused to extend the check-off system to contract workers, so these workers pay their dues manually.

Union Chairman Sasmita

On August 2011, the company announced it would end the contracts of 200 fixed term workers without making any severance payments. The union challenged the company decision, drawing attention to the fact that the contracts contravened Indonesia law by explicitly stating that during a fixed-term contract it was forbidden to be married or to become pregnant, and those workers who did so would be deemed to have resigned without severance pay.

After two weeks of negotiations and pressure from union members, the company finally reversed its decision. They arranged placement tests for the 200 contract workers. Out of 200 workers, 110 have become permanent staff since August 2011. Sasmita, the Cusson Union Chairman, said, “We were satisfied with the result, but yet we still had to struggling for all the contract workers to be permanent.”

Union officers of Cussons in Union Office

According to Sasmita, the company has ceased using contracts with discriminatory language and now contract workers can marry and become pregnant without fear of being terminated. “Those contract agreements … no longer exist, and we keep our eye (out) to make sure that the company (does) not use (them) anymore,” he added.

The 110 workers now enjoy health insurance and benefits. Tuti, one of the workers said, “Now I am not worried again about my future, (to) become permanent workers is my dream, although still (there is) a long way to go for me together with the union to fights for the welfare of the whole workers in Cussons.”