Banking and Respect for Workers' Rights

Thursday, September 1, 2016

Indonesia - This case study try to answer the questions, how is the role of banks in influencing the labor system in Indonesia and how is the responsibility of banks in respecting workers' rights in the sector manufacture. To answer these two research questions, this study uses descriptive qualitative methods with a United Nations framework approach on Business and Human Rights and workers' rights in ILO instruments. This Banks that invest in these two companies are CIMB-Niaga Bank and UOB Bank. The data collection techniques were carried out through literature studies and interviews with key informants. The results showed that Bank CIMB Niaga and UOB Bank did not play a significant role in influencing labor policies at PT Jaba Garmindo and PT Panarub Industry. Although the labor problems in the two companies have been published by the mass media, the banks did not attempt to dialogue with the Trade Union to identify the problems that occurred. Even when the company experiences bankruptcy submitted by the Bank, the Bank does not ask for input from the Trade Union at all. Whereas respect for workers' rights has been carried out by banks in other countries, such as by ASN Bank (Netherlands) and Deutsche Bank (Germany).


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