Organizational planning and Competence Development of Human Resources (HR), is one of management’s responsibilities in order to foster a sense of caring for employees towards the pace of the Company’s business growth. HR is a major asset for the Company, therefore the interests of employees are a top priority that must be met. AKR has a policy to provide equal treatment for all employees both in employment opportunities, remuneration and training and development. AKR also has a policy to provide a safe and comfortable working environment for all employees in all business locations.
EMPLOYMENT
The Company makes Law No. 13 of 2003 concerning Labor as the main foundation in building employment with employees. The Company fulfills the normative rights of employees as stipulated in the Law. In line with that, the Company also provides various forms of other facilities to employees in order to improve the competence, capacity and welfare of employees.
EQUALITY AND EQUITy OF RIGHTS
AKR always maintains work comfort for employees by creating equality, equal opportunities and employee work comfort. The Company gives the same rights to everyone to participate in the recruitment process carried out by the Company as long as it meets specified administrative requirements, regardless of gender, ethnicity, taste and religion. The recruitment process is carried out openly for the purpose of equity and openness.
The Company also provides equal opportunities to every employee who has been recruited to develop competencies and careers according to the needs of the Company.
One manifestation of the principle of equality implemented by the Company can be seen from the composition of the Board of Directors of the Company which currently has three female Directors from a total of eight Directors.
EMPLOYEE REMUNERATION AND WELFARE
The Company always complies with government regulations and regulations regarding regulations relating to compensation and benefits received by employees. AKR provides appropriate remuneration in accordance with applicable laws and regulations. The Company has complied with the applicable Labor Wage provisions in Indonesia, namely the Provincial Minimum Wages stipulated in each region.
In addition to wages, the Company also provides various allowances for permanent employees, as follows: 1. Health benefits, given based on the level and length of work of each employee. 2. Pension benefits, given to employees who have worked for 15 years or more and have reached retirement age (55 years). 3. Vehicle ownership programs, based on the policies of each division and depending on the length of work. 4. House allowances, given to employees placed outside the city and foreign workers. 5. Food allowance and transport allowances, given up to the supervisor level. 6. Communication equipment and credit card benefits, for certain divisions. 7. Twelve days work leave allowance (will increase in line with the length of work, with a maximum of 20 working days). 8. Leave allowance for 3 months for employees who give birth. 9. Leave benefits for special events such as death, circumcision, baptism, graduation, birth, etc. for employees.
In addition to the facilities and benefits mentioned above, the Company also registered all employees at the BPJS Employment (formerly Jamsostek), to anticipate unexpected events experienced by the Company’s employees when carrying out their work.
In order to motivate employees to be high-performing, while at the same time aligning employee goals with the Company, the Company entered into a Management Stock Option Plan (MSOP) program. This program is held as an effort of the Company to maintain the best employees and increase ownership of the Company. The MSOP program is aimed at those who have the authority and expertise that have a direct impact on improving the Company’s performance.
COMPETENCY DEVELOPMENT
The Company provides equal opportunities to all employees to participate in competency development programs that are carried out in accordance with the needs of the Company. In addition to supporting the Company’s performance, this competency development program is carried out to increase employee capacity and career development.
In 2018, the Company organizes 194 training followed by 1.104 participants, both held in house and by third parties. To support the competency development program, the Company has also equipped various facilities, including the Learning Center and learning with e-Learning methods.
FREEDOM OF ASSOCIATION
The Company guarantees the rights of employees to associate and gather as stipulated in the Law of Manpower. However, until the end of 2018 there were no trade union organizations established by AKR employees. Nevertheless, the Company always involves elements of employees in determining company policies, especially those relating to employees in general.
In the absence of trade union organizations, the Company strives to optimize HR management while taking into account the interests of employees. The Company implements good industrial relations coaching with employees because it realizes that the success of the HR field always begins with the successful development of harmonious Industrial Relations between companies and workers.
INDUSTRIAL RELATIONS DISPUTE RESOLUTION MECHANISM
If there is a problem with industrial relations, Bipartite negotiations will be conducted (between employees and companies) with the following stages:
- In the event of an agreement, the employee will make a resignation and the company will provide compensation in accordance with the agreement of both parties or a Joint Agreement (PB).
- If no agreement is reached, the Bipartite minutes will be made and submitted to the Manpower Office for mediation.
- If In the mediation an agreement is reached, a peace deed is made.
- If there is no agreement, there will be a recommendation from Manpower Office.
- If unable to accept advice, then proceed to Industrial Relations Court (PHI).
- After the decision of the industrial relations court, and still not agree, proceed to the Supreme Court.
- The Supreme Court’s decision is binding and must be fulfilled.
EMPLOYEE TURNOYER RATE
The Company strives to manage employee turnover as well as possible. One of the efforts made is to always review existing policies regarding remuneration and benefit packages for employees. In addition to material matters, repairs are always carried out in order to create a conducive and pleasant work environment for employees. With a good working environment, the turnover rate of the Company’s employees tends to be low.
During 2018, the Company recruited 281 new employees. As for employees leaving due to termination of employment were as many as 282 employees, consisted of 12 employees entering retirement, 7 employees passed away, 217 employees resigning at their own request, and 46 employees terminating employment due to other reasons.
Particularly with regard to the rights of female employees to take maternity leave, they are entitled for three months leave. In 2018, there were 6 employees taking maternity leave. Of that number, as many as 6 employees or 100% who took maternity leave decided to return to work.
The turnover rate of the Company’s employees in 2018 is equal to15.32%.
OCCUPATIONAL SAFETY AND HEALTH
To create a safe, healthy and environmentally friendly work environment, the Company established a Department of Occupational Safety, Health, and Environment / Safety, Health and Environment (K3L / SHE). All workers must understand, support, implement and assist in implementing the SHE policy. Not only that, all workers are also required to keep the work environment clean, safe and comfortable so that their work does not disturb other workers. In addition, workers must also work together to create a work environment that is free of air pollution, noise, and other things that can interfere with the implementation of work. Related parties in the implementation of SHE are the community, agencies, firefighters, and local government.
With regard to occupational health and safety, the Company has full commitment as indicated by the establishment of the “Six Zeroes” target in the implementation of SHE around the Company, namely:
- Zero Fatality (prevents accidents that result in loss of life)
- Zero Lost Time Injury (prevents the occurrence of work accidents which results in loss of time)
- Zero Cross Over (prevents exchange or mixing of consumer demand)
- Zero Product Quality Problems (preventing the occurrence of problems that cause reduced product quality)
- Zero Spillage (prevents the scattering of products during loading and unloading) 6. Zero Potential Fatality Accident (preventing work accidents that may arise in the field).
HEALTH
The Company also provides various health facilities to its employees, including:
- Medical check up for employees
- First aid kits and medicines for mild illness on each floor of the building or in each branch / terminal
- First aid training and first aider designation on each floor of the building or at each site
- BPJS Health Membership
AKR has also implemented an Occupational Health and Safety Management System in accordance with PP 50 of 2012 on AKR Ciwandan. In 2018, the implementation of Occupational Health and Safety (OHS) Management System received a Gold Flag with a Score of 90.36 out of 100.
As part of the implementation of OHS, in 2018 the Company also conducts the following activities:
- SHE Internal Audit every 6 months
- Implementation of MCU (Medical Check Up) / Operational Health Check in the Terminal, Transport and Warehouse & Health Campaign
- Blood donors in Bitung, Marunda I, Banjarmasin and Lampung Branches
- Extermination of mosquitoes in the work environment
K3 TRAINING
The Company continues to strive to improve employee safety awareness with reference to applicable regulations regarding SMK3. In addition, the Company also runs Safety, Health and Environment (SHE) Standard Operating Procedures (SOPs) to achieve the zero accident target.
To support the achievement of the target, one of the steps taken by the Company is to carry out a number of trainings related to Occupational Health and Safety. In 2018, training related to K3 is as follows:
OCCUPATIONAL HEALTH AND SAFETY FACILITY
In addition to conducting training, the Company also strives to create a healthy, safe and comfortable work environment by providing facilities and equipment to prevent workplace accidents, such as:
- APAR
- Hydrant System and Foam System in each terminal.
- Drill is always carried out every year, with the composition of 3 Small Drills and 1 Big Drill (Involving third parties, such as: Fire Extinguisher, Ambulance, Police, Pelindo, etc.).
- Work environment in each measured space (Lighting, Noise, Temperature and Humidity) in accordance with Permenaker No. 05 Tahun 2018.
- All terminal activities have gone through Risk Assessment in the form of HIDARC (Hazard Identificaton Risk Assessment and Determination Control) Golden Rules that apply at the terminal including: Permit Work, Energy Isolation (LOTO), Confined Space Entry, Driving Safely, Working at High, Lifting operation, Management of Change.
- To ensure maintenance of work equipment and avoid hazards hidden in piping, tanks and all work equipment, P & ID data, SCE (Safety Critical Equipment) and HAZOPs (Hazard Operability Studies) available in each terminal.
- First aid kits in areas that are easily accessible, as a form of early assistance if something unexpected happens in the event of a work accident.
- First aid kits in areas that are easily accessible, as a form of early assistance if something unexpected happens in the event of a work accident.
OCCUPATIONAL ACCIDENT MANAGEMENT
The Company strives to create an appropriate working environment and SOP to avoid occupational accidents. However, if there are cases of work accidents, the Company has also prepared its own SOP. The Company also prepares an Emergency Reponse Team for each Terminal / Warehouse owned by the Company.
The organizational structure of the Emergency Reponse Team is as follows
OCCUPATIONAL ACCIDENTS IN 2018
AKR has been working optimally to implement health and safety systems and procedures in the Company’s operational environment. However, there are still workplace accidents in the Company’s operational environment. The work accident incidence in 2018 is as follows:
Compared to 2017, there was an increase in the number of accidents and incidents related to injuries (person), where in 2018 there were Lost-Day incidents and also affected employees.
AWARDS AND CERTIFICATION IN THE FIELD OF MANPOWER AND OHS
Zero accident award given to Branches:
- Bitung 2018
- Ciwandan 2018
- Banjarmasin 2018
- Stagen 2018
- Palaran 2018