The Commitment & Policy
In June 2021, PLN already declared its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labor, Environment, and Anti-Corruption through Confirmation of Support-UNGC Communication on Progress Number 22210/STH.01.03/C01000A0012A21. This statement itself addressed to all of PLN Stakeholders, which referred to BOD (Board of Directors) regulation / Peraturan Direksi 0019.P/DIR/2018 about Stakeholders Management, the PLN Stakeholders include internal stakeholders (PLN Group employees and families, labor union, pensionaries, and families) and external stakeholders (all Government Institutions, customers, lenders, IPP, related associations, mass media, NGOs, partners, suppliers, and other related stakeholders).
To support this commitment, PLN has integrated it into The General Management Human Resources Policy:
- To nurture harmonious relations with employees based on mutual cooperation as outlined in the periodically reviewed Collective Bargaining Agreement;
- To remain in full compliance with all applicable employment regulations;
- To apply a fair, transparent, and accountable performance-based remuneration system;
- To uphold human rights for the employees and ensure full support is given to the Employees Union;
- To set programs of competence enhancement and training to improve the performance of individuals, groups, and ultimately corporations;
- To apply equality in career paths;
- To apply gender impartiality in terms of remuneration.
The Employees Demographic
PLN has 44.299 employees in 2020 that spread on all units in Indonesia. In every line of business activity, PLN supports and implements workforce diversity by giving equal opportunity. Aside from age status, gender, and other demographics stated in Sustainability Report 2020, PLN also has the employee demographics categorized by educational level and marital status as shown below:
PLN Employees based on educational level
PLN Employees based on marital status
Based on demographics, it shows how PLN gives many employment opportunities regarding the employees’ education degree and marital status. The employees also have the same opportunity on achieving a certain career path based on their competency.
The Risk Assessment and Mitigation Regarding Human Rights
The risk management in PLN is conducted based on the Board of Directors Regulation No. 0117.P/DIR/2019 on General Guidelines for the Implementation of Risk Management at PT PLN (Persero) that has been referred to the ISO 31000. In 2020, one of PLN’s major risks is unable to meet the targeted HR capacity and capability. Based on the identification, one of the possible causes is the failure in fulfilling the rights of employees. Based on the assessment, this risk would have a high-risk level if appropriate risk mitigations are not in place.
To mitigate that risk especially concerning the rights of employees, PLN has specific internal regulations about the living wage, working hours, and the labor union that applied to all PLN employees across Indonesia without discrimination.
Our projects also identified and implemented risk mitigation regarding human rights. For example, the Upper Cisokan Hydro Electric Power Plant Project identified the labor risks and mitigations regarding human rights risk, which include the following:
|Child labor/risk of underage labor (under 14) is considered low. Participation of youth labor (under the age of 18) is likely and there is a risk that they may be involved in hazardous work or experience interruption of education||Minimum age requirements for the workforce will be incorporated in bidding documents and worker contracts, labor supervision as further defined in the LMP. Verification of the ages of staff and subcontractor staff prior to recruitment and keep records of staff ages on file will be conducted|
|OHS risk is high due to physical hazards associated with construction and low awareness/experience/capacity||Apply Hierarchy of Controls –elimination/substitution, engineering controls, administrative procedures|
|Use of third-party contractors, primary suppliers may present OHS risks. Nevertheless, the project’s leverage to enforce corrective actions on these types of workers may be limited||Inclusion of primary supplier requirements in bidding documents and contracts, labor supervision as further defined in the LMP|
|The influx of workers and service providers into communities may increase the rate of crimes and/or a perception of insecurity by the local community. Such illicit behavior or crimes can include theft, physical assaults, substance abuse, prostitution and human trafficking. Local law enforcement may not be sufficiently equipped to deal with the temporary increase in local population||Construction workforce management as defined in the CESMP, including provisions of health, recreational facilities, and other basic services, labor supervision and contracting requirements (i.e. Codes of Conduct)|
|The influx of people may bring communicable diseases to the project area, including sexually transmitted diseases (STDs). Incoming workers may be exposed to diseases to which they have low resistance. This can result in an additional burden on local health resources||OHS and communicable health awareness training, labor supervision, provisions of recreational activities and work-life balance arrangements|
|OHS and communicable health awareness training, labor supervision, provisions of recreational activities and work-life balance arrangements||OHS and communicable health awareness training, labor supervision, provisions of recreational activities and work-life balance arrangements|
By implementing those mitigations, the activities will be considered safe from violation of human rights.
Employees’ Working Hours
PLN conducts HR management, which refers to employment regulations that are officially written on the latest Collective Bargaining Agreement. The Collective Bargaining Agreement has been signed & registered to the Directorate General of Industrial Relations Development, BPJS Health, and BPJS Employment. Some articles on the agreement also regulate the daily working hours that must be 7 (seven) to 8 (eight) hours per day and should not exceed forty hours in a week. Meanwhile, the overtime hours must be compensated by appropriate numbers based on overtime hours and employees’ grade level. Furthermore, PLN has submitted the Confirmation of Support-UNGC Communication on Progress Number 22210/STH.01.03/C01000A0012A21, stipulating that PLN respects its work partners’ human rights, including working hours and overtime system.
PLN adopts the performance-based HR development policy, which is supported by an employee performance management application system. Concerning remuneration package policy, PLN adopts the 3Ps principle, namely: pay-for-person (P1), pay-for-position (P2), and pay-for-performance (P-3). Each semester, PLN assesses the performance of each employee, ranks all employees based on their work performance so every employee gets an equal opportunity to grow and develop their careers in accordance with their contributions in the respective fields of expertise and positions in the company. In addition, PLN also provides some facilities including the health care system for employees and their families.