Practice Sharing : PT HM Sampoerna Tbk. Pullman Hotel, 16 November - PowerPoint PPT Presentation

Sustainable and Responsible Business Practices within Enterprises : Pathways to Enhancing Industrial Relations in Indonesia Practice Sharing : PT HM Sampoerna Tbk. Pullman Hotel, 16 November 2016

A G E N D A  Facts about PT HM Sampoerna Tbk.  IR External Context  IR Internal Context  IR Mandate and IR Pillars  Key Business / HR Challenges with IR Implications  IR Strategies and Roadmap

SAMPOERNA INDONESIA TERRITORY : 5,193,250 km square territorial area 1,904,569 km square land area Source : Wikipedia

M A G N I T U D E 2 Trade Unions 1 Work Council 110 7 Factories 110 29,885 ee Bio Sticks in 2015 Offices LR Source : HR, Sep 2016

FACTS ABOUT SAMPOERNA

A G E N D A  Facts about PT HM Sampoerna Tbk.  IR External Context  IR Internal Context  IR Mandate and IR Pillars  Key Business / HR Challenges with IR Implications  IR Strategies and Roadmap

FACTS ABOUT TOBACCO INDUSTRY IN INDONESIA

MANUFACTURER AND MANPOWER Number of Manufacturers Manpower 4.669 4.198 3.28 281 2.495 1.994 1.664 1.320 1.206 995 728 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 al 728 28 manuf Total ufacturer acturers s list sted ed in Indone nesia sia Source : Industrial Ministry Source: DJBC - 2015

TOBACCO REGULATIONS NO IMPORTED TOBACCO ! T A X • No Communication : 40% - 50% 23% Industry and Government tobacco shortage increase in • No Flavor, including clove for total industry 2016 • Plain Packaging • Tobacco crop switching

A G E N D A  Facts about PT HM Sampoerna Tbk.  IR External Context  IR Internal Context  IR Mandate and IR Pillars  Key Business / HR Challenges with IR Implications  IR Strategies and Roadmap

EMPLOYEE REPRESENTATIVE BODIES Head of He of Wor Work Counci cil Chairman Vi Vice ce He Head Secr cretary Vice Vi ce Chairman I Vice Vi ce Chairman II Member Mem Member Mem Member Mem Secr cretary I Secr cretary II Treasurer I Tr Tr Treasurer II WORK RK COUNCIL L TRA RADE UNION (LK (LKSB) • Communication and and • Consultation Disp Dispute Reso esolution C O M PA N Y • • Resu esult : : Rec ecommendation on on Resu esult : : CLA LA, Wag ages s • be better work orkplac ace Boa oard Mem embers s : : 56 56 • Boa oard Mem embers s : : 50 50 Source: Law 13/2003

A G E N D A  Facts about PT HM Sampoerna Tbk.  IR External Context  IR Internal Context  IR Mandate and Pillars  Key Business / HR Challenges with IR Implications  IR Strategies and Roadmap

INDUSTRIAL RELATIONS MANDATE To enhance INDUSTRIAL PEACE based on TRUST, RESPECT , and COLLABORATION with WORK COUNCIL/TRADE UNION , EMPLOYER ASSOCIATION , and MANPOWER MINISTRY in order to ensure a SUSTAINABLE GROWTH of the company.

IER-Capable Compliance People Manager IR PILLARS INDUSTRIAL PEACE Improve IER Engaged Union, Capability & LKSB, & Infrastructure Employee Strong External Relations

C O M P L I A N C E Concluded Zero No finding Employment dispute that TPO Normative Mapping CLA 2016 – 2018 goes to the court • P re - q u e s t i o n n a i re • 4 Wo r k s h o p s by Reg i o n f o r e d u c a t i n g M P S.

IR-CAPABLE PEOPLE MANAGER 35 Trainings from 34 target 12 West: 10 4 1 East: 8 Manufacturing Factory Sales & Marketing Distribution Logistics

IR TRAINING : KELOMPENCAPIR

ENGAGED UNION, LKSB, EE The 1 st Annual LKSB LKSB Engagement events Rebranding Establishment All LKSB Meeting Anniversary, Gold Pin, Annual Management Union in OPP on Sep • Gain trust • Rebranding Meeting, etc. • Better function • iFactor

Kongkow Bareng Union - Management ENGAGED UNION Objective : to strengthen engagement between Management and PUK Venue : Puncak Bogor Time : 30 Jun 2016 Issue Discussed: • Computer Training for PUK team (and other softskill training) • Strategy to attract non union Daily employee • Promotion from within for Daily • COS impact due to people transfer HMS-PMID • Higher workload due to organization change Next step : • Routine Union Management meeting (quarterly) • Management support to Develop PUK Team

ENGAGED UNION Union West - Warung RT Mamin

Ngobrol Bareng & National LKSB Workshop ENGAGED LKSB Ngobrol Bareng on Apr 18 created a slogan “ Saya Bangga Sampoerna ” which becoming a campaign to be proud as a Sampoerna family LKSB Workshop on Apr 27 – 29, branding iFa Facto tor : Factual, Committed, Trust, cOllaborative and Respect as a pillar to its working programs

Integrated Pre-Retirement Program (iProud) ENGAGED EMPLOYEE • Participation rate increase • 5 plants • 165 employee participated to 53% • Satisfaction rate 4.4

ANNUAL MANAGEMENT-UNION MEETING

August 25, 2016 GOLD PIN Sharing-La Hotel, Surabaya 772 Recipients New Package of Gold PIN Award (SS Ideas) go Bangga Sampoerna Dance With Management Surprise for Pak Paul as Gold PIN Recipient

SAMPOERNA ANNIVERSARY / EAMD

SAMPOERNA CUP

SAMPOERNA SCHOLARSHIP

UNION KARAWANG ELECTION Candidate Registration – Campaign – Election – Counting – Inauguration

ARTIST TO FACTORY

SAMPOERNA VOLUNTEER CLUB Indonesia Anniversary Celebration Painting houses in Kenjeran Garut Floods “ Kuta Beach Cleaning” with Surabaya Mayor, Ibu Donation from Karawang Plant ± 32 Employee Involved (Sales, Risma. Employees: IDR 6.270.000 Marketing, Clove Hub) In Collaboration with Joger Store

SAMPOERNA VOLUNTEER CLUB Refocus Program (“Less is More”) through Society Economy Empowerment Cooking Class in Sukorejo 16 April 2016 , SVC Cooking Class Batch II in Suwayuwo Village, Sukorejo. 30 April 2016 , SVC Cooking Class Batch III in Bulukandang Village, Sukorejo. 28 May 2016 , SVC Cooking Class Batch IV in Ngadimulyo Village, Sukorejo.

STRONG EXTERNAL RELATIONS Maintain positions with Stakeholder Sampoerna TU National Tripartite Deputy Head of Regulatory (MC) representatives in Wage Committee Prov. East Java Deputy Head of Wages (MDS) TU Affiliate Wage Committee Surabaya Vice Chairman in Pasuruan (Sinar) • PD : 2 Indonesia Delegation on ILC (MC & • PC Mlg : 1 MDS) • PC Krw : 2

STRONG EXTERNAL RELATIONS Strengthen engagement Collaboration Project with Conducted National Meeting with BPJS East Java: Manpower Ministry of Tob, Cig, Food & • (Worker Deployment Dept): Beverages TU (RTMM) with Pap s mear check • Talk s how U p -s killing former Indones ia Sampoerna • Prolanis Migrant Workers in Karawang • A dvocate balance • Koperas i Sampoerna regulations D rugs tore • Affiliate with other org/coy

UPSKILLING PROJECT FOR MIGRANT WORKERS Engage with Minister of Employment to win support for expatriation in Sampoerna and also secure Karawang Plan from external destruction.

ENGAGEMENT WITH BPJS KESEHATAN Engage with BPJS Health to have commitment to improve medical services for HMS employees.

HMS-RTMM NATIONAL MEETING FOR IHT Synergy between HMS and RTMM for safeguarding a sustainable growth of tobacco industry.

IMPROVED IER CAPABILITIES Continuous Improvement in LR • 14 ideas Improved IER Team’s capabilities • Gold Medal - IProud (pre -retirement with IER Master Club program) • Finance for Non-Finance • Silver Medal - Warung Buruh Cerdas • Sales • Law Practices • Wages

A G E N D A  Facts about PT HM Sampoerna Tbk.  LR External Context  LR Internal Context  LR Vision and Mission  Key Business / HR Challenges with LR Implications  LR Strategies and Roadmap

Key Business/HR Challenges with LR Implications • Market trend is shifting from hand-rolled to machine rolled. • Increase number of employees and bigger area of coverage, while capability of People Manager in managing the LR issues is limited. • Labor regulations uncertainty. Key Strategies • Strengthen engagement with Tripartite (Gov, APINDO, TU) in order to have balanced employment regulations. • Actively participate in APINDO as Tripartite/Wage Council in city where the factory is located. • Join Functional Meeting to educate People Manager on Labor Relations issues. • Regularly meet WC and TU to discuss issues.

A G E N D A  Facts about PT HM Sampoerna Tbk.  LR External Context  LR Internal Context  LR Vision and Mission  Key Business / HR Challenges with LR Implications  LR Strategies and Roadmap

2016 - 2018 • LR Training for newly promoted People Mgr IER-Capable Compliance People Manpower Compliance audit to Manager • Collective Labor Agreement 2016 - 2018 Sampoerna business • Development Plan for TU and Work Council • National Meeting of Work Council INDUSTRIAL PEACE Improve IER Engaged Union, Capability & LKSB, & Infrastructure Employee • Develop LR Dashboard • Enhance performance through Continuous Improvement Strong External Participate in Tripartite : Relations • Balanced Regulations

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