PT. Fuji Seat Indonesia is a foreign company producing car-seats for a leading automotive company in Indonesia, PT. Astra Daihatsiu Indonesia, with a production capacity of 1400-2000 seats per day and employing 700 workers. To meet the needs of a very large workforce, the company is still recruiting new workers until today.
According to the provision of Labour Law No. 13 year 2003, Article 59, stating that if a company employs workers with contract status at their core-business, the status of the workers by-law is permanent. It was also confirmed by the Notes of Inspection issued by the Manpower Department of Karawang district and strengthened by the Collective Agreement on November 8, 2012.
However, the company has been disobeying the collective agreement and ignoring the Notes of Inspection of the related authority by not appointing the workers as permanent workers, which means that the company has violated the provisions of Labour Law No. 13/2003, the major Labor Law in Indonesia. Instead, the company unilaterally terminated and suspended their workers and did not pay compensation as the rights of the workers. The layoffs is violating legal procedures and mechanisms set in the Labour Law No.13 /2003 which resulted in unpaid wages, process wages, compensation and other rights.