Paper short abstract:

A case study investigating the implications of the H&M Global Framework Agreement for the implementation of collective bargaining rights in the Indonesian garment industry.

Paper long abstract:

Many global union federations (GUFs) have concluded global framework agreements (GFAs) with multinational companies to compel compliance with core labour standards across their global operations (Papadakis (ed), 2011). The emphasis is on addressing national regulatory gaps in jurisdictions to which production is relocated (Fichter & McCallum, 2015; Hadwiger, 2018). In 2015, IndustriALL (the GUF for manufacturing sectors) signed a GFA with H&M covering its direct suppliers and subcontractors. National monitoring committees that include national union and H&M representatives were set up in six countries–Bangladesh, Cambodia, India, Indonesia, Myanmar and Turkey–which are prioritised for participation in implementation programmes.

I am conducting a case study on the GFA's implementation in the Indonesian garment industry to investigate whether it has contributed to improving working conditions and industrial relations. The study draws on interviews conducted with, amongst others, garment workers, trade unions, and H&M suppliers. This paper focuses on my initial findings on the implementation of collective bargaining rights, which include:

• While collective bargaining rights are being implemented at H&M suppliers, this has minimal impact on working and wage conditions.

• Collective bargaining agreements mostly replicate national legislation. Wages are based either on district-based minimums for less than one-year service or wage scales determined unilaterally by factories.

• Recent labour law reforms have increased contractual flexibility and other precarities, thereby reducing union bargaining leverage. H&M suppliers have exploited the opportunities offered in terms of legislation and other social factors, notwithstanding their participation in GFA programmes to promote collective bargaining.