HERO SUPERMARKET UNION Jl . H.Muhi No.21A Kebayoran Lama Jakarta - Selatan 12310 Indonesia. Email: sekretariat@sphsherounion.com Website : www.sphsherounion.com PELSPI / LOFTF Project on the Promotion of Principled, Inclusive and Business Sustainable CSR Approach in the Philippines Manila, Philippines, 01st December 2015

Workers of PT Hero Supermarket Tbk (SPHS) was established on 1 September 1999 registered with the Republic Indonesia Department of Labor No. KEP 663 / M / BW / VII / 2000 and recorded in Kandepnakertrans of South Jakarta No. 103 / V / P / VII / 2001 as Enterprise Union

Objective of the Union Giving Protection to the Workers Defense of Rights and Interests of the Workers Improve the well-being eligible for workers and their families

Hostile IR at the beginning Least unionised in the retail/wholesale in Asia Union formation efforts in the sector lead to conflicts Difficult legal challenges for the union organisers 1998: Free and Democratic TU in Indonesia The formation of Hero Supermarket Union Company badly affected by the financial crisis Stores burnt during Jakarta riots, Mass layoffs 80% inflation rate

Hero Union at the Initial Stage Relation with the management was highly confrontational Strikes were common The union was known to be one of the most militant in Indonesia The relationship was hostile Negotiations with the management ended in deadlocks

Communication at the global level DAIRY FARM Communication at the global level Afiliattion National Level Subsidiary Afiliattion Company Level HERO SUPERMARKET HERO UNION CBA Bipartite

The role of Global Union: UNI Apro The trust and reciprocal relationships at subsidiary is an extension of the relationship that exists and in formation at the global level between parent Multinational Company and UNI Apro Global union.

Tools to strengthen the Industrial Relation Joint Workshop/Event between the Union and Management Joint Team Building Collective Bargaining Agreement Labour Management Cooperation, to bridge labour and management

Joint Education and Training

CBA Negotiation

Social Dialogue: Institutionalised Labour Management Cooperation

Social Dialogue - LMC Company Share more profits Respect the workers’/union right Invite the union in managers’ training and company events. Union Improve the productivity Helping reduce the shrinkage Improve the customer service Improve the discipline Assist in Business Transformation

Management Attitude to the Union and Workers Respecting the Union as partner and provided the union leaders with information to keep them aware of the company situation Effective Communication: Union and management have a cordial relationship where meetings are regular and constructive.

Union Attitude to the Management Labour has to recognise the ‘business case’ and amend its demands accordingly Bargaining with facts and data Problem Solving (the need for common solutions to employment issues) Deliberation

Partnership based Industrial Relation SOCIAL CAPITAL TRUST RECI- PROCITY

IR in Hero as a model for Benchmark of Trade Unions in Indonesia

Hero Union as a model in the Tripartite Forum on Partnership IR in Indonesian Retail Sector

Bipartite Cooperation in Hero for OSH is a Model in the Tripartite Meeting on OSH

Labour Management Cooperation on CSR Management and Union Use Social Dialogue and Institutionalized LMC to develop and implement principled, inclusive, and business sustainable CSR strategies Union Union Social Responsibility (USR)

CSR and USR

We are starting from Zero to Hero Hero Union is strong with nearly 12,000 members We keep our principle: Free, Democratic and Independent and in the mean time We have a strong foundation of Social Partnership Develop and implement principled, inclusive, and business sustainable CSR strategies