DON'T BUY BARBIE!
(Asian Labour Update n. 30, April-July 1996)
Though Indonesia is the world's 1 8th largest toy exporter, it's toy industry is quickly growing. In 1992, Indonesia's exports of toys were estimated to be US$ 76 million. Between 1988 and 1992, exports rose over 200%. In 1993 and 1994, 34 domestic and foreign-invested toy projects were approved, with the majority of investment coming from South Korea and Taiwan.
The vast majority are stuffed toys and components, but Indonesia also produces wooden games and toys.
Source:"Licence to make a killing", International Market News, Hong Kong Trade Development Council, July 1996, pp. 4-9.
Indonesia Facts and Figures
Population (1995): 195.7 million/est. (Source. Central Bureau of Statistics)
Labourforce (1995): 88.5 million/est.
Economic growth real GDP (1995): 7.1%
Per capita GDP (1995): US$ 920/est.
Inflation rate (1995): 9.9% (Aug.)
Minimum wage US$2.26/day (1996) ( Jakarta and West Java) US$ 59/month (138,000Rp.) (April, 1996) (Medan)
Beginning in 1996, companies are required to pay 30 days a month, even though workers work 25 days.
PANDOKAN'S INVESTIGATION
(by Mr. Jannes Hutahaean, Executive Secretary of Pondokan)
Pondokan, a labour rights advocate group in Medan, Indonesia, recently completed an investigation into the practices of employing child labour in local toy and toy related factories. What they discovered at a factory which produces dresses for the Barbie Doll, one of Mattel Corporation's most famous toys, confirmed that the factory was in gross violation of international standards concerning child labour as well as Indonesia's laws relating to the employment of child labour.
Pondokan conducted an investigation at the Citra Sandang Graha, Ltd, (CSG), a textile mill located in the Tanjung Morawa Industrial Area in Medan, Indonesia from April 1, 1995 through January 1, 1996. We found that the factory employs child labour under 15 years old, and violates Indonesia's law regarding child labour. The following is a summary of our findings:
1. Long Hours of Work
Child labourers at the factory were divided into two shifts. Shift 1 worked 8:00 a.m. to 3:30 p.m., shift 2 from 4:00 p.m. to 1 1:00 p.m.. The workers were given a 30 minute rest during each shift.
Employing child workers for 7 hours per day is in violation of Indonesia's laws, which state: Child labour shall not work for more than 4 hours per day. Indonesia Labour Regulation No. 1 Article 4 (a) Permenaker 1987. The factory clearly violates this provision.
Employing child labour at night violates the labour law. Article 4 (b) states "Child labour shall not be employed a night." By using child workers until 11:00 in the evening clearly violated this provision.
Failing to provide children with an educational program under the National Education Program violates the labour law. Article 6 of the Indonesia Labour Regulation states that "the employer must comply with the National Education Program requirements. The employer at the CSG factory provides no education benefits for the child workers.
CSG also violates Indonesia Labour Regulation 21, Permenaker 1954 which states that workers are entitled to 12 days off annually. CSG does not comply with this provision.
2. Work Agreement
CSG considers child workers to be in training for the first 9 months while working at the factory. During this time, the workers can not claim any wages, or other benefits like health. If the child worker can not meet the set target during this time, they will be terminated without compensation. Also, if they are needed, child workers are forced to work on Sundays, holidays and at night during the job training period. Therefore, during this initial nine month period, they are essentially free daily labour.
3. Forced Labour
At CSG, child labourers are employed to work at night, on Sunday and national holidays, and during menstruation time.
4. Fair Wages
A. STANDARD MINIMUM WAGE
From April 1,1995 through March 31,1996 the standard minimum wage for North Sumatera was Rp.4200 per day (for seven hours). The monthly wage is Rp.109,200. However, child workers (newcomers) only receive Rp. 2,000 per day for the first three months (or 52,000 per month), Rp.3,000 per day for the second three months (or Rp. 78,000 per month), and 3,750 per day for the third three month period (or 97,500 per month).
The minimum wage was increased as of April 1,1996 to 138,000 per month, or 4,600 per seven hour day. Child labourers saw a meagre increase of Rp.400 per seven hour day for the first six months, and Rp 450 for the third three month period. This is still far below the legally required minimum wage.
Child workers had no wage card, so they do not know about their standard minimum wage, the over time hours actually worked, etc.
B. OVERTIME
From April 1, 1995 through March 31, 1996 the standard minimum overtime wage for North Sumatera for child labour was Rp. 900 for the first hour, Rp. 1200 for the second hour and beyond. However, the employer at CSG pays the children only 600/hour in overtime wages.
On Sunday, according to the Indonesia Labour Legislation, overtime wage is Rp. 1,800 for the first hour, and Rp. 2,400 for subsequent hours. CSG however, pays the child workers only Rp. 1,200 per hour.
If a child worker is assigned to shift 2 (4:00 to 11:00 p.m.) And has overtime work to do, it is completed during shift one (8:00 a.m. to 3:30 p.m.). If they are then unable to work the second shift, which is their normal shift, they lose the overtime wages earned during shift two.
5. Health and Safety
Children labourers pay Rp. 2,600 for labour insurance. However, CSG did not give the child workers insurance cards. Therefore, when a child worker falls ill or has an accident at work, they must pay the medical costs themselves.
The factory does not provide gloves to the workers.
Children workers working the night shift are provided with only an egg and glass of milk. They are not given transportation by the employer, and must return home by themselves from the factory at 11:00 p.m. to midnight.
6. Equipment
Child labourers at CSG are required to purchase a uniform (a t-shirt with the company logo) for Rp. 8,000. They are also required to purchase their own work equipment such as scissors and sewing equipment.
Our investigation revealed blatant violations of Indonesia's labour laws regarding child labour, and revealed work conditions which were unsafe for children, and in violation of their basic rights. In protest to these exploitations by the factory making Barbie dresses, we urge you, DON'T BUY BARBIE!
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