Labor Management Procedures Labor Market Information and Skills System Transformation for Labor Market Flexibility (P166693) LABOR MARKET INFORMATION AND SKILLS SYSTEM TRANSFORMATION FOR LABOR MARKET FLEXIBILITY (LISTRAF) TABLE OF CONTENT LIST OF ABBREVIATIONS .................................................................................................... 3 LIST OF TABLES .................................................................................................................. 4 LABOR MANAGEMENT PROCEDURE................................................................................... 5 1. INTRODUCTION .................................................................................................................. 5 1.1 Project Background ............................................................................................................... 5 1.2 Project Description ................................................................................................................ 5 1.3 Scope and Objective of LMP .................................................................................................. 6 2. OVERVIEW OF LABOR USE ON THE PROJECT........................................................................ 7 3. ASSESSMENT OF KEY POTENTIAL LABOR RISKS .................................................................... 8 4. OVERVIEW OF LABOR LEGISLATIONS .................................................................................. 9 4.1 National Regulations ............................................................................................................. 9 4.2 World Bank ESS 2................................................................................................................. 10 4.3 Comparison Between National Legal Policies and World Bank ESS2 .................................. 11 5. ROLES AND RESPONSIBILITIES........................................................................................... 12 6. POLICIES AND PROCEDURES ............................................................................................. 12 7. AGE OF EMPLOYMENT...................................................................................................... 13 8. TERMS AND CONDITIONS ................................................................................................. 13 9. FEEDBACK AND GRIEVANCE REDRESS MECHANISM ........................................................... 14 10. CONSULTANT FIRM/CONTRACTOR MANAGEMENT ........................................................... 14 11. MONITORING AND REPORTING ........................................................................................ 15 12. COVID-19 PROTOCOL FOR WORKERS ................................................................................ 15 ANNEX 1 CONTRACTOR/CONSULTANT FIRM CODE OF CONDUCT (EXAMPLE) ................ 17 ANNEX 2 WORKER CODE OF CONDUCT (EXAMPLE) ....................................................... 20 ANNEX 3 FOCAL POINT FOR LISTRAF PROJECT .................................................................. 22 LIST OF ABBREVIATIONS ASN State Civil Apparatus Balai PPK Balai Perluasan Kesempatan Kerja [Indonesian] Job Market Opportunity Center Bappenas Indonesian Ministry of National Development Planning / National Development Planning Agency Binalavotas Pembinaan Pelatihan Vokasi dan Produktivitas [Indonesian] Vocational and Productivity Development Training BLK Balai Latihan Kerja [Indonesian] Training Center BPS Badan Pusat Statistik [Indonesian] National Agency of Statistics BPVP Balai Pelatihan Vokasi dan Produktivitas [Indonesian] Vocation and Productivity Training Center COC Code of Conduct Ditjen Direktorat Jenderal [Indonesian] Directorate General ESCOP Environmental and Social Codes of Practice ESCP Environmental and Social Commitment Plan ESF Environmental and Social Framework ESS Environmental and Social Standards F2F Face-to-Face FGRM Feedback and Grievance Redress Mechanism FP Focal Point HR Human Resources ILO International Labor Organization IPK Informasi Pasar Kerja or [Indonesian] Labor Market Information JKP Jaminan Kehilangan Pekerjaan [Indonesian] Job Loss Insurance LISTRAF Labor Market Information and Skills System Transformation for Labor Market Flexibility LMI Labor Market Information LMP Labor Management Procedure MoEC Indonesian Ministry of Education and Culture MoF Indonesian Ministry of Finance MoM Indonesian Ministry of Manpower MoPW Ministry of Public Works and Public Housing MSMEs Micro, Small and Medium Enterprises OHS Occupational Health & Safety OHSMS Occupational Health & Safety Management System PIU Project Implementation Unit PMU Project Management Unit PPE Personal Protective Equipment PPK Pusat Pasar Kerja or Labor Market Centre PPTK Pendidikan dan Pelatihan Teknik dan Kejuruan or Technical and Vocational Education and Training PPNPN Non-Civil Service Government Employee SEA/SH Sexual Exploitation and Abuse/Sexual Harassment SEP Stakeholder Engagement Plan SKSU SiapKerja Service Unit UMP/UMK Provincial Minimum Wage/Municipal Minimum Wage UPTP Central Technical Implementing Unit VAC Violence Against Children LIST OF TABLES Table 1 Category and Estimation of the Number of Project Workers .................................................... 7 Table 2 Summary of Comparison between the National Legal Policies with the World Bank ESS2..... 11 4 LABOR MANAGEMENT PROCEDURE 1. INTRODUCTION 1.1 Project Background The lack of awareness of a country's workforce potential will slow down growth and limit the country from creating better quality jobs, which, in turn, may damage the welfare of the population. Based on World Bank's data in 2021, Indonesia is one of the lowest in terms of worker productivity among ASEAN countries. With a relatively low growth rate in worker productivity, Indonesia is increasingly becoming left behind. In recent years, Indonesia has embarked on crucial structural reforms that could boost labor demand. However, the current business-as-usual behavior will not allow increased growth opportunities from the implemented reform efforts. Additional interventions are needed to address supply-side constraints associated with predicting job skills needs in the next decade or two, impacted by digitalization and the green transition. It is imperative for workers in Indonesia to make informed training, education and employment choices and for the training to be aligned to the market needs to ensure that it produces employable individuals with the skills the required for the jobs available. This in turn, may increase the level of population welfare and economic growth. 1.2 Project Description The Labor Market Information and Skills System Transformation for Labor Market Flexibility (“LISTRAF�) Project, aims to improve access to and the quality of skills development and employment services for the working-age population. This Project supports the employment reforms currently planned by the Government of Indonesia (GoI) with nationwide coverage, given its focus on system-level reforms, and will be implemented by the coordination of the Ministry of Manpower (MoM). To achieve its objective, the Project is divided into three (3) components, which are: • Component 1, Development of a reliable Labor Market Information System (LMIS), aims to improve the quality, relevance and accessibility of labor market information services for students, jobseekers, workers, employers, practitioners (career guidance and job counselors), and policymakers (including those deciding on skill development needs, curricula, and courses). This component focuses on strengthening of the SIAPkerja platform through: (a) enhancement of both online (SIAPkerja) and offline Labor Market Information System (LMIS) to respond better to the end-user needs (“human centric design�) and to improve job matching outcomes, (b) strengthening of the quality of the labor market data collection, analysis and dissemination; and (c) expansion of the access to LMI services (e.g. skill assessment, job matching, links to skill training and entrepreneurship support) through SIAPkerja Service Units (SKSUs). Activities include: (i) strengthening of the labor market information platform through redesign of the system architecture; (ii) strengthening the analytical processes that render labor market intelligence; and (iii) inclusive LMI services to support skills monitoring system; • Component 2, Utilization of labor market information to promote high quality, integrated and climate friendly training ecosystem, that aims to establish equitable, regionally competitive, and climate-friendly skill pool nationwide by establishing 22 new BPVPs (Badan Pelatihan Vokasi dan Produktivitas; Vocational Training and Productivity Agency), at strategic areas with future potentials for regional competitiveness, and on upgrading the training quality of existing 21 5 BPVPs. Key sets of activities include: (i) Establishing 22 new BPVPs in regional cities to enhance skills matching between local demand and supply; and (ii) Improving the quality of training at BPVPs through enhancement of linkages with the labor market and strengthening of the institutional system and governance of BPVPs; • Component 3, Strengthening the Institutional Capacity and Project Management that will finance technical and operational assistance in day-to-day coordination, procurement, Financial Management (FM), safeguards, citizen engagement, and routine Monitoring and Evaluation (M&E) through the establishment of the Project Management Unit (PMU) led by the Labor Market Center (Pusat Pasar Kerja, or PPK) (as head of the PMU) in coordination with Planning Bureau. The activities will cover the procurement of consultants to support the PMU in the project implementation, purchase of equipment, and other operational cost related to: (i) carrying out studies and consultations to pro-actively and comprehensively manage social, environmental, climate-related, and other risks related to the Project; (ii) monitor and evaluate performance and impact of the Project; and (iii) grievances management. This Component will also support internal and external change management and communications to improve buy-ins of all key impacted stakeholders during the implementation and in the utilization of the project’s outputs and outcomes. As above, the project’s coverage is nationwide, given its focus on system -level reforms. Thus, most of this Project activities will be carried out by the Central MoM supported by the subnational manpower agencies and training centers (BLK), and involve relevant government line ministries and/or other agencies and the private sectors. Under the Component 2, the project will establish 12 new campuses and conversion and upgrading of 10 BLKs formerly managed by subnational governments to make them Coach BPVPs. This will support civil works, procurement of equipment, and will be complemented by instructor training and capacity building of staff to ensure fully functional BPVPs by the end of the project. Civil works will ensure compliance with the energy- efficient green-building standards and ensure inclusiveness for persons with disabilities. BPVP development master plans will be prepared for these 22 BPVPs through consultancy and in consultation with local private sector, which will guide the green-infrastructure design and flexible floor layout and training programs suitable for the local industries. The initial selection of training programs will include at least one program that supports climate friendly industry or skills. 1.3 Scope and Objective of LMP The Project adopts the World Bank Environmental and Social Framework (ESF), including the ESS (Environmental and Social Standard) 2 on Labor and Working Conditions that expects the Project to develop a Labor Management Procedure (LMP). MoM prepared this LMP to identify the Labor requirements from the ESF and national laws and regulations, and the ES risks from the Project to subsequently determine the mitigations and resources needed to address Labor issues. The LMP is developed since the early stage of Project preparation and, as a living document, will always be reviewed and updated if necessary, in accordance with the Project development stage. The LMP, as described in the World Bank ESS2, applies to all Project workers, including full-time, part-time, temporary, and migrant workers. It includes (i) Workers who are directly employed by the project proponent, including government officials assigned to work specifically on the project (Direct Workers) and (ii) Workers employed through third parties (contractors for construction works or 6 consulting firms) to perform tasks related to the main functions of the Project and Workers employed by main suppliers (Contracted Workers). This document will be subject to public consultation and disclosed on a public website with other social and environmental documents to meet the World Bank's requirements. 2. OVERVIEW OF LABOR USE ON THE PROJECT In the implementation, the Project will involve (i) Direct Workers from the Government or project consultant hired directly by the PMU, such as temporary staff to support labor market data collection, provision of SKSU service and consultants that will directly support the PMU in project and financial management, etc.; and (ii) Contracted Workers (workers engaged or employed by third parties) such as workers from international and local consulting services, contractor and other suppliers for materials and services. The Project will employ Direct Workers and Contracted Workers with an estimated number as described in Table 1, all of whom are over 18 years of age. The actual numbers of Project workers under each Component are only estimation and will later be confirmed based on the ongoing needs of each work activity at the Central level MoM, BLKs/BPVPs at provincial and district/city levels. Table 1 Category and Estimation of the Number of Project Workers Category Involved Workers Estimated Number of Workers Direct Workers Central MoM staff (State Civil Apparatus/ASN • 68 staff for Component 2; (Workers directly and Non-State Civil Service Government • 25 staff for Component 3 employed by the Employees/PPNPN) including directors, MoM for Project coordinators, and project management units implementation) (PMU) MoM staff at each BPVP location, that will be a 5 staff/trained SKSU officer at each dedicated support for SKSU implementation BPVP Individual consultants/temporary workers: 3-4 consultants/workers Data engineers, Programmers, IT analysts, etc. that will work under Pusdatik Individual consultants/temporary workers: 2-3 consultants/workers Senior analysts, Economists, data engineer, designers that will work under Pusren or Pasker Individual consultant for monitoring and TA of 1 consultant the process, supporting Pasker Individual consultants on need basis to provide 1-2 consultants quality review, etc. Contracted Workers Firms to: (i) benchmark the system and TBA by the selected firm (Workers hired implement job-matching algorithm, (ii) develop through third national job-matching algorithm; (iii) develop parties) new system modules Consultant firms for data collection and TBA by the selected firm analysis Firms to (i) develop SOP, (ii) develop training TBA by the selected firm materials and (iii) evaluate SKSU implementation Construction workers involved in the civil works TBA following the finalization on the for development of new BPVP/remodeling size of construction and remodeling works. 7 Category Involved Workers Estimated Number of Workers Firms to conduct: (i) review of Master Plans, (ii) TBA by the selected firm training packages design, (iii) conducting training and coaching to teachers Firm for PMU (safeguards, procurement TBA by the selected firm support, FM support, project management, monitoring and evaluation) 3. ASSESSMENT OF KEY POTENTIAL LABOR RISKS Project activities will consist of desk-based work (i.e. LMIS development, provision of training and capacity building) and physical work that are mostly under Component 2, such as construction and remodeling of 22 model BPVPs, and improvement of training centers to provide accessible environments (ramps, signage, etc.). The number of workers in each project locations will most likely ranged from 5 to maximum of 20. Therefore the following risks are minor and considered as manageable. • Occupational Health and Safety (OHS) risks related to construction of new building. For the new BLK that will be newly constructed (i.e., in greenfield location), the OHS risks to construction workers are envisaged due to construction activity. Construction workers may be exposed to occupational hazard such as from the lifting activities, utilization of power tools and equipment, working at height, working with electricity, heat exposure and etc. While this LMP provides requirement for labor related risks, requirement for preventing, minimizing and/or mitigating the OHS hazard to the construction workers is provided under the ESCOP document (see section for Occupational Health and Safety). The Project will require the Contractors, as part of their contract, to develop and implement the Labor and OHS procedures for their construction activities, appropriate to the construction activities and its respective Labor and OHS hazard to their workers. • Occupational Health and Safety (OHS) risks related to upgrading/remodeling activities. Under the consideration that the activity will be conducted within the existing BLK building, the existing BLK office workers may be exposed to dust, noise, and vibration from the upgrading/remodeling work during its implementation and it may affect their health. For the remodeling workers, OHS hazards may be sourced from the activities of equipment usage (machinery, electricity, lifting/transporting equipment, etc.) and medium-high risk activities (welding, use of chemicals, high noise levels, etc.). The relevant mitigations to be carried out by the Project for the upgrading/remodeling activities are as described under the ESCOP document (see section for Dust, Noise and Vibration). The Project will require the Contractors to develop and implement the Labor and OHS procedures as part of the contract. • Risks related to sexual exploitation and abuse/sexual harassment (SEA/SH), are considered potentially low for the Project. This is since the contact between service providers and project beneficiaries will take place in public and supervised settings, and the number of workers to be mobilized for the civil works anticipated will be small and will be recruited locally. To prevent incidents related to SEA/SH, the Project will require a Code of Conduct on the prevention SEA/SH within the bidding document for the Contractor and a requirement in the TOR of Consultant Firm to provide existing behavioral standard that includes general prohibitions against misconduct, harassment, actions related to SEA/SH during the procurement stage (see Annex 1 and Annex 2 8 for examples of GBV Code of Conduct). This Code of Conduct will apply for all Project Workers including workers from selected Third Parties (contractors and consulting firms) during the implementation stage. Especially for female workers, the Project will ensure that work implementation will occur in public spaces and in groups or not conducted alone. • Risks of COVID-19 exposure. WHO and Indonesia Minister of State Apparatus Empowerment and Bureaucratic Reform through Circular Letter No. 9/2023 have revoked the COVID-19 Emergency Status. This issue is considered as no longer relevant as risk. However, under Section 12 of this LMP, the generic COVID-19 Protocol is still provided for future reference, in case needed. Labor risks and mitigations will be updated throughout the Project following the development of Project activities and requirements. 4. OVERVIEW OF LABOR LEGISLATIONS 4.1 National Regulations The main Labor regulation in Indonesia is Law No. 13/2003 on Manpower (Manpower Act). The Manpower Act regulates employment relations, terms and conditions of work, including working hours and overtime arrangements, worker organization and work agreements/collective work agreements, and employment termination. Indonesia has ratified all of the ILO (International Labor Organization) Fundamental Conventions, including those concerning: • Forced Labor Convention; • Freedom of Association and Protection of the Right to Organize Convention; • Right to Organize and Collective Bargaining Convention; • Equal Remuneration Convention; • Abolition of Forced Labor Convention; • Discrimination (Employment and Occupation) Convention; • Minimum Age Convention; and • Worst Forms of Child Labor Convention; The Manpower Act requires employers to establish terms and conditions that are mutually agreed upon with their workers in the form of a contract signed by both parties. This includes the work and type of activity, with an agreement on the form of work to be submitted, work location, wages and payment method, rights and obligations of worker and employer, date of commencement and duration of the contract, the location and date of the cooperation contract, work hours and overtime. In summary, the articles in the Manpower Act contain: • Equality and non-discrimination, for every worker to have equal opportunities without discrimination to secure a job (Article 5) and have the right to receive equal treatment without discrimination from employers (Article 6); • Employment contracts are based on mutual agreement and must not violate applicable regulations, public interests, and public morality (Article 52); • Child labor, in which employing children is prohibited (Article 68); 9 • Female workers under 18 may not work between 23.00 - 07.00. Employers must protect women who work between 23.00 - 07.00 by providing food and shuttle transportation. Pregnant workers may not work between 23.00 - 07.00 if it is dangerous to their health (Article 76). Workers who experience menstrual pain are allowed to take menstrual leave on the first and second days of menstruation (Article 81). Workers who give birth have three months of paid leave; • Full-time workers work 40 hours per week in 5 or 6 days. Overtime should not exceed 3 hours per day or 14 hours per week. Payment of overtime wages is mandatory (Articles 77-78); • A break of at least half an hour is mandatory after 4 hours of work. Weekly breaks are 1 or 2 days a week. Annual leave is 12 days for workers who have worked for 12 months (Article 79). Working on holidays is considered overtime and the employer must pay overtime wages (Article 85); • Workers have the right to occupational health and safety protection; morality and decency; be treated with human dignity and according to religious values (Article 86); • Wages are based on a decent standard of living and take productivity and economic growth into account. The minimum wages are determined for each region, city, or regency (Articles 88-89); • Workers and their families are entitled to social security (Article 99); • Disputes between workers and employers must be resolved through mutual agreement. If a settlement is not reached, the dispute must be resolved as regulated in the relevant law (to be brought to court or the labor dispute committee). Workers are allowed to strike, and employers are also allowed to apply a lockdown when negotiations fail under certain conditions. (Articles 141-149); • Institutions with more than 50 workers must establish bipartite committees, which will bridge communications, consultations, complaints, and dissent across the institutions. Another relevant regulation is the Minister of Manpower Regulation No. 5/2018 on Occupational Safety and Health (OHS), which require the implementation of OHS requirements of Work Environment for Employers and or Management (Article 2). It includes controlling the aspects of physical, chemical, biological, ergonomics, and work psychology facilities to meet the standards, the provision of hygiene facilities, and the provision of competent OHS personnel (Article 3). 4.2 World Bank ESS 2 The Environmental and Social Standards 2 (ESS2) on Labor and Working Conditions under the Environmental and Social Framework (ESF) describes the World Bank's labor requirements, promotes sound worker-management relationships, and develops the project’s benefits by treating workers fairly and providing safe and healthy working conditions. The main objectives of ESS2 are: • To promote safety and health at work; • To promote the fair treatment, non-discrimination, and equal opportunity of project workers; • To protect project workers, including vulnerable workers such as women, persons with disabilities, children (of working age, in accordance with this ESS) and migrant workers, contracted workers, community workers, and primary supply workers, as appropriate; • To prevent the use of all forms of forced labor and child labor; • To support the principles of freedom of association and collective bargaining of Project workers in a manner consistent with national law; and 10 • To provide Project workers with accessible means to raise workplace concerns. ESS2 applies to all project workers, including full-time, part-time, temporary, seasonal, and migrant workers. Workers under the Project’s authority are responsible for implementing written labor management procedures applicable to the Project. These procedures will address the way in which this ESS2 will apply to different categories of Project workers including direct workers, and the way in which the Project will require third parties to manage their workers. Project workers will be provided with information and documentation that is clear and understandable regarding their terms and conditions of employment. The information and documentation will stipulate their rights under national labor and employment law and ESS2 requirements (which will include any applicable collective agreements), including their rights related to hours of work, wages, overtime, compensation, and benefits. This information and documentation will be provided at the beginning of the working relationship and when any changes occur. 4.3 Comparison Between National Legal Policies and World Bank ESS2 A comparison between the World Bank's ESS2 requirements and Indonesia's national legal framework shows that the main ESS2 requirements have been addressed within Indonesia's national legal framework. For requirements that are not regulated in Indonesia's national legal framework, the Project will develop specific procedures to address these gaps prior to the implementation of Project activities. Where Indonesia's national legal framework and ESS2 require different approaches to the same issue, the more stringent requirements will be followed by the Project. Table 2 Summary of Comparison between the National Legal Policies with the World Bank ESS2 World Bank’s Indonesian National Legal ESS2 Topics Summary of Gap Requirements Requirements Working • Written labor • Written employment Indonesia regulation does not Conditions management contract; have specific requirement for and procedures; • Employment and Working development of labor Management • Terms and conditions of Conditions; management procedures. of Worker employment; • There are clauses on Relationships • Equality and non- equality and non- discrimination; discrimination, especially • Worker's organizations; related to human rights; • Employment • There are no requirements management related to development of procedures. employment management procedures. Protecting • Prohibition of child • Prohibition of child labor; No gap between World Bank the Work labor; • Prohibition of forced labor. requirements with Indonesia Force • Prohibition of forced regulatory requirements. labor. Grievance GRM must be available for GRM is available to employers Indonesia regulation does not Redress all workers. for more than 50 workers have specific requirement for Mechanism through a bipartite or individual worker GRM. (GRM) tripartite organization that acts as a communication forum. Occupational • Detailed procedures are Requirements to protect No gap between World Bank 11 World Bank’s Indonesian National Legal ESS2 Topics Summary of Gap Requirements Requirements Health and required for each employees, and detailed requirements with Indonesia Safety project; procedures are in government regulatory requirements. • Requirements to regulations protect employees, train employees, document incidents, prepare for emergency response, and resolve problems; • OHS performance monitoring Worker’s • The working minimum Workers aged 13-15 years are World Bank requirement has Minimum age is 14; allowed to work with a more stringent age limit, Age • Workers aged 14-18 guardian's permission and may which is minimum of 14. years may only be not work in difficult and employed or engaged unsafe working conditions. under certain conditions 5. ROLES AND RESPONSIBILITIES The project has established the Project Focal Point, through Secretary-General Decree Number 1/517/KU.03/III/2023 (Annex 3), involving various work units in the Ministry of Manpower. The Focal Point will monitor the implementation of this LMP document, including the person in charge of implementing the Feedback and Grievance Redress Mechanism (FGRM) for Project Workers, as well as other ES documents including SEP, ESCOP and ESCP. 6. POLICIES AND PROCEDURES The Project is committed to complying with the relevant requirements of the ESF and applicable national regulations, including: • Forced Labor. Projects and consulting firms/contractors are prohibited from carrying out forced labor practices, including: o Working on a bond/contract basis (working for debts they cannot repay); o Excessive mobility restrictions; o Excessive notification period; o Keep workers' identities or other documents issued by the government or privately owned; o Imposition of recruitment/employment fees paid at the start of employment; o Loss of or delays in wages that impede workers' right to terminate employment per their legal rights; o Unreasonable fines; o Corporal punishment; and o Use of security personnel or other personnel to coerce project workers to perform their work or other prohibitions that coerce project workers to work involuntarily. • Occupational Health and Safety (OHS). The Project is committed to: 12 o Comply with the OHS requirements of the ESF and relevant national regulations including Ministry of Manpower Regulation No. 5/2018; o Encourage active participation in OSH risk prevention; o Ensure the competence of all Project Workers in carrying out their work and provide appropriate and adequate training; o Provide adequate OHS risks protection for Project Workers (directly or through a collaborating contractor/consulting firm); o Improve the system and performance of OHS management sustainably; o Disseminate the OHS policy to all Project Workers, emphasizing the OHS responsibilities of each individual; o Show the policy statement to all parties involved in the Project. • Sexual Exploitation and Harassment (SEA/SH). The project seeks to prevent practices (both verbal and physical) which are forms of SEA/SH, referring to any act that is committed against one's will and is based on unequal power relations. All project workers, including consulting firm/contractor companies and their individual workers, are required to sign a Code of Conduct (CoC) or a Behavioral Standard on SEA/SH (examples of the SEA/SH CoC is provided in Annex 1 and Annex 2). 7. AGE OF EMPLOYMENT The Manpower Act allows children aged 13-15 years to work in uncomplicated and safe working conditions with the guardian's permission. Meanwhile, in ESS2, the minimum age limit is 14 years, with those under 18 years old not being allowed to work in hazardous conditions. Under this Project, the Ministry of Manpower will recruit all Project workers with age requirement of over 18 years. 8. TERMS AND CONDITIONS The Ministry of Manpower adopts several articles from Manpower Act into the Collective Labor Agreements (PKB), including provisions on work agreements, protection, remuneration, and welfare, including for workers with disabilities, child labor, women workers, working time, and OHS. The determination of wages, working hours, and other provisions of Consulting Firms/Contractors for their workers will be the authority of the Consulting Firms/Contractors concerned. However, the Project has the authority to submit employment-related requirements through bidding documents and contracts with Consulting Firms/Contractors applicable to their workers involved in the Project. Provisions on wages and payment methods will be written in the employment agreement between the Project and the Project Workers and between the Consulting Firms/Contractors (Third Party) and their workers involved in the Project. The Project is obliged to comply with the regulation on Province/City Minimum Wage (UMP/UMK) applicable at the Project activity location, depending on which with the higher value. 13 9. FEEDBACK AND GRIEVANCE REDRESS MECHANISM The Project will encourage all workers to implement a Feedback and Grievance Redress Mechanism (FGRM) for the Project in an accessible, equal, and mutually respectful manner and apply the SOP regarding complaints of violations/whistleblowing applicable at the Ministry of Manpower1. This FGRM procedure will also be accessible through the website https://bantuan.kemnaker.go.id/support/home. Following the national requirements and World Bank ESS2, Worker FGRM will be available to all Project workers, including direct and contract workers employed by Consulting Firms/Contractors supporting the Project. The PMU will manage the FGRM under the responsibility of the Focal Points that will be provided at national, provincial and district levels as appropriate to the Project needs. The PMU will internally appoint an officer as the central daily manager of this FGRM, tasked with recording and overseeing the collection and settlement of grievances received from the Focal Points during Project activities. The person in charge of FGRM will ensure the confidentiality of the worker's identity who submits the grievance or feedback and will not disclose them without approval for further verification and investigation. There will be no prosecution/reprisal to the worker submitting the grievance/feedback. If an investigation is required, the person in charge of the FGRM will ensure there is no conflict of interest between the worker submitting the grievance/feedback and the officer/team conducting the investigation. Anonymous grievances/feedback can also be submitted and will be followed up appropriately. The mechanism will follow the concept of hierarchical resolution of employee grievance/feedback. This means, when possible, grievances will be resolved at a lower level before being forwarded to a higher level to allow for a simpler and quicker resolution, with an understandable and transparent process and better involvement of the appropriate management/stakeholders. For contracted workers, the PMU will ensure that respective employers (consulting firms and/or contractors) will provide FGRM channels to receive grievances related to labor and working conditions. 10. CONSULTANT FIRM/CONTRACTOR MANAGEMENT All Consulting Firms/Contractors (Third Parties) must comply with the relevant Human Resources, OHS Procedures, and LMP Procedures and must submit an annual implementation report to the Environmental and Social Focal Point of the Project. 1 In accordance with the Decree of the Minister of Manpower No. 371/2015 concerning Standard Operating Procedures for Management of Complaints of Violations at the Ministry of Manpower 14 This requirement will be stated explicitly in the bidding document with the anticipation that the Consulting Firms/Contractors will have to include a budget for the implementation, monitoring, and reporting of activities related to Labor Management. All inquiries regarding LMP from the Consulting Firms/Contractors can be directed to: • Environmental and Social Focal Point of the Project • Project Coordinator • Human Resources (HR) 11. MONITORING AND REPORTING The Project will closely monitor the labor performance of Consulting Firms/Contractors and report it regularly to the World Bank and other interested parties as part of the Project implementation report. In addition, the Project must ensure that workers comply with Indonesian law, including meeting the minimum age required to work (not child labor), and are not forced to work. Monitoring results for Consulting Firms/Contractors are reported at least every six months or periodically, adjusted to the overall contract period. 12. COVID-19 PROTOCOL FOR WORKERS In accordance with Circular Letter from the Minister of State Apparatus Empowerment and Bureaucratic Reform No. 9/2023 and WHO for the revocation of the COVID-10 Emergency Status, the following generic protocol for COVID-19 will no longer be applicable. However, this is still described under this LMP document for future reference, in case needed. • Verbal dissemination of information or applicable COVID-19 protocol guidelines, both spoken and in writing, which include: o Reminding workers to continue wearing masks; o Encouraging workers not to congregate in crowds; o Reminding workers to wash their hands regularly or use alcohol (hand sanitizer); and o Advise participants to cover their faces by bending their elbows or using a tissue if they cough or sneeze. The committee will provide tissues and a closed trashcan for safe disposal. • Provision of dispensers or hand sanitizers at workplaces; • Spraying disinfectants regularly into rooms and onto equipment used for work; and • Adjustments to the work seat/desk spacing of at least one meter apart. The technical coordinator of each component will monitor the workers to ensure all workers are in good health. If workers have a mild cough or low-grade fever (i.e., a temperature of 37.3oC or more), they must stay at home and self-isolate. They are also expected to avoid close contact (1 meter of distance or less) with other people, including family members. Workers are expected to be able to take a COCID-19 antigen test to confirm they are not infected with COVID-19. If the participant's test result is positive for COVID-19, it is highly recommended for the participant to take a COVID-19 SWAB PCR test. 15 Workers, who meet many people and are at risk of COVID-19 exposure, are required to take the COVID-19 PCR SWAB test at least once a week or according to the activity of meeting many people. For further information, the WHO has published COVID-19 handling recommendations and guidelines for the public, including social distancing, respiratory hygiene, self-quarantine, and medical recommendations, to refer to the WHO website: https://www.who.int/emergencies/diseases/novel-coronavirus-2019/advice-for-public. 16 ANNEX 1 CONTRACTOR/CONSULTANT FIRM CODE OF CONDUCT (EXAMPLE) Consulting Firms/Contractors Code of Conduct Implementation of Health, Safety, and Environmental Standards and Prevention of SEA/SH The Company, (Company Name), is committed to ensuring that the Project will minimize negative impacts on the surrounding environment, communities, and workers. This will be done by implementing Health, Safety, and Environmental standards and ensuring Occupational Health and Safety standards and gender-based violence prevention are in accordance with the laws and regulations. (Company Name) is also committed to protecting children under the age of 18 by creating and maintaining a safe and violence-free environment and ensuring that there are no incidents of sexual exploitation and abuse and sexual violence. All inappropriate acts against children, including sexual exploitation, abuse, and violence, constitute violence against children. Therefore, all parties involved in the project, including workers, contractors, suppliers, partners, or company representatives, are not allowed to take such actions. The Company is committed to implementing the following basic principles and minimum standards of conduct, which will apply to all parties involved in the project without exception: General 1. (Company Name) including its employees, colleagues, representatives, subcontractors, and suppliers — is committed to complying with all applicable national and local laws, rules, and regulations. 2. (Company Name) is committed to fully implementing the minimum standards of behavior as stipulated in the code of conduct. 3. (Company Name) is committed to treating women, children (individuals under the age of 18), and men [equally] regardless of race, color, language, religion, political or other opinions, national, ethnicity, or social status, or any other status. Any action that is not in accordance with the rules stipulated in this code of conduct is considered a violation of this commitment. 4. (Company Name) must ensure that interactions with members of the surrounding communities are respectful, non-discriminatory, and free from violence. 5. All parties in the project are prohibited from using language and behavior that are degrading, threatening, harassing, abusive, inappropriate, or sexually provocative. 6. (Company Name) will follow all appropriate work instructions/rules (including those regarding environmental and social norms). 7. (Company Name) will protect and ensure proper use of the property (e.g., prohibit theft, carelessness, or waste). Health and safety 8. (Company Name) will ensure staff, workers, and all parties involved in the project effectively implement the project OSH Management Plan. 17 9. (Company Name) will ensure that everyone at the work location wears appropriate personal protective equipment provided at the location, prevents avoidable accidents, and reports conditions or events that could potentially pose a safety hazard or threaten the environment. 10. (Company Name) will: i. prohibit the consumption of alcohol during work activities; and ii. prohibit the use of narcotics and illegal drugs or other substances that may interfere with work activities. 11. (Company Name) will ensure that adequate water and sanitation facilities are available, and the workers can use them at the project location. 12. (Company Name) will not employ children under the age of 18 for construction and or domestic work or allow them to be on the work location due to the hazardous nature of the construction site. Sexual Exploitation and Abuse (SEA) and Sexual Harassment (SH) 13. SEA/SH, as part of Gender-based violence (GBV) is a serious offense and must be sanctioned. Sanctions may be given in the form of punishment and/or termination of employment, and if necessary, they may be reported to the police if the case has entered the realm of law. 14. Any form of gender-based violence is unacceptable regardless of whether it occurs in the workplace, around the workplace, or in the surrounding community. 15. Sexual harassment of workers and staff (e.g., by flirting, making unwanted sexual advances, and other verbal or physical behavior of a sexual nature, or sexual gestures or written messages) is a form of gender-based violence that is strictly prohibited for all parties in the project. 16. Prohibition of promising or giving rewards for the purpose of obtaining sexual favors (e.g., promising promotions, or threatening to terminate employment), making payments in kind or cash for the purpose of obtaining sexual favors, and all other forms of exploitative behavior. 17. Prostitution in any form and at any time in the workplace or in the surrounding community is strictly prohibited. 18. Sexual contact or activity with children under 18 — including through digital media, is strictly prohibited. The lack of information or misunderstanding about the child's age cannot be used as an excuse/justification for violence cases that occur. In addition, the child's consent cannot be used as an excuse/justification for violence cases. 19. In addition to being subject to sanctions by the company, perpetrators of gender-based violence may also be prosecuted if they are proven to have done so. 20. All employees, workers, and parties involved in other projects are strongly encouraged to report suspicions or acts of gender-based violence and violence against children committed by fellow workers, both in the same company/institution or in different companies/institutions. Reports must be made in accordance with the project's existing gender-based violence reporting procedures. 21. The project manager (project leader) is obliged to report and handle gender-based violence, both suspected and occurred because the project manager has the responsibility not only to carry out company commitments but also to hold workers accountable for fulfilling their obligations in accordance with applicable regulations. 18 Implementation To ensure that the above principles are applied effectively, the company is committed to: 22. Ensure that all managers sign the project's 'Managers Code of Conduct,’ which outlines their responsibilities to implement company commitments and enforce [individual] responsibilities in the 'Individual Code of Conduct.' 23. Ensure that all employees sign the project's 'individual code of conduct' confirming their agreement to comply with health, safety, and environmental standards, ensure occupational health and safety (OHS) standards, and not engage in activities that may result in gender-based violence, violence against children, or sexual exploitation and abuse/harassment. 24. Display the company and individual code of conduct in offices and public places in the workplace, such as the waiting room, rest area and lobby, canteen area, and health clinic. 25. Appoint/select the appropriate worker to be nominated as the company's focal point or the person in charge of handling SEA/SH or GBV and VAC cases. 26. Ensure that (Company Name) effectively implements the agreed Code of Conduct, monitors and evaluates its implementation, and provides appropriate final reports to the designated Project Implementing Unit and the World Bank. 27. Ensure that all employees and workers undergo induction training before starting work on the location to ensure they understand (Company Name)'s commitment to complying with occupational health, safety, and environment (OHSE) standards and the project's Code of Conduct for SEA/SH. 28. Ensure that all employees and workers participate in training or outreach activities related to SEA/SH or GBV/VAC, including daily briefings or training to increase understanding of occupational health, safety, and environment (OHSE) standards and the Code of Conduct for SEA/SH. I hereby declare that I have read the Company's Code of Conduct above and, on behalf of the company, agree to comply with all the provisions that have been stipulated. I understand my role and responsibility to support the implementation of Health, Safety, and Environmental projects and OHS standards as well as the prevention of gender-based violence and violence against children. I understand that any action that is inconsistent with the Company's Code of Conduct may result in disciplinary action and legal consequences. Name of Institution: Name of Institutional Officer: Position in the Institution: Date: Signature (and Stamp): Stamp duty 10,000 19 ANNEX 2 WORKER CODE OF CONDUCT (EXAMPLE) Individual Worker Code of Conduct Implementation of Health, Safety, and Environmental Standards and Prevention of SEA/SH For Project ............... I, the undersigned, as written below, understand that I must carry out all project activities in compliance with the implementation of Occupational Health, Safety, and Environment (OHSE) standards and the Prevention of Gender-Based Violence (GBV) and Violence Against Child (VAC). The project is committed to implementing a code of conduct for occupational health, safety, and environmental standards as well as the prevention of gender-based violence and violence against children, either at work, in the surroundings of work location, or in the community. Failure to follow these standards is considered a serious violation and sanctions will be imposed, ranging from a warning, punishment, or employment termination. If it is categorized as a crime, then the perpetrator of the violation may be prosecuted by law (police). I agree to do the following when implementing the project: 1) Comply with all the terms and conditions stipulated in the project code of conduct. 2) Wear personal protective equipment (PPE) while on the work location or when involved in project activities. 3) Comply with the zero-alcohol policy during work activities and do not use narcotics, illegal drugs, or other substances that may interfere or interfere with working abilities at any time. 4) Attend and actively participate in training and or socialization related to Occupational Health, Safety, and Environment (OHSE) and prevention of gender-based violence organized by the company where I work. 5) Respect diversity and treat all individuals, including women, children (under 18 years of age), and men with respect regardless of culture, ideas, opinions, limitations, gender, ethnicity, origin, political beliefs, religious beliefs, generation, citizenship status, social class, sexual orientation, and education level. 6) Do not use inappropriate language or behave in an inappropriate manner towards anyone, including women and children, such as being rude, sexually harassing, demeaning, or other actions that are inappropriate for the local community or general culture. 7) Do not commit sexual exploitation of fellow workers and or members of the surrounding community. 8) Do not sexually harass fellow workers and or members of the surrounding community, either verbally or sexually, making the person feel offended, humiliated and or intimidated. For example, ridicule, sexist jokes, inviting/coercing others to perform involuntary sexual acts, including giving personal gifts for sexual favors. 9) Do not make promises of anything favorable (e.g., promotions), or make threats (e.g., threats of losing a job) or paying in kind or money, for sexual favors. 10) Do not use prostitution in any form and at any time in the workplace or the surrounding area of the workplace. 20 11) Do not engage in sexual activity with children under the age of 18, including teaching or engaging through digital media. Misunderstanding the child’s age cannot be considered a defense/justification for the violence. In addition, the child’s consent cannot be used as a defense or justification for the violence. 12) Do not engage in sexual interactions with community members around the project, including relationships involving lucrative promises (can be in the form of money or goods) to community members in exchange for sex (including prostitution). Such sexual activity is not justified within the scope of this code of conduct. 13) Report to superiors or through existing reporting channel mechanisms on all actions related to gender-based violence or other forms of code of conduct violations, both for suspected cases and cases committed by colleagues. 14) If proven to have violated the code of conduct, will provide approval for background checks to be carried out by the local police (police certificate or Minutes of Investigation). 1) Sanctions I understand that if I violate the provisions stipulated in this code of conduct, I will be subject to disciplinary action and will be given sanctions, which may be in the form of: 1) Unofficial warning. 2) Official warning. 3) Employment termination. 4) Legal process (report to police), if necessary. I understand that I am responsible for complying with all provisions stipulated in this code of conduct, by avoiding all actions or behavior that may be classified as gender-based violence and violence against children. I hereby certify that I have read the provisions in this individual code of conduct and understand my roles and responsibilities to prevent all prohibited actions, and I understand that any action that is not in accordance with this individual code of conduct may result in disciplinary action that may affect the applicable employment contract. Therefore, I agree to comply with all these terms. 21 ANNEX 3 FOCAL POINT FOR LISTRAF PROJECT ATTACHMENT : NUMBER : 1/1556/KU.03/IX/2023 DATE : 12 SEPTEMBER 2023 TEAM STRUCTURE OF THE PROJECT MANAGEMENT UNIT NO. NAME WORK UNIT POSITION IN THE TEAM 1 2 3 4 1. Hery Budoyo, S.T., M.M. Biro Perencanaan dan Head of Project Manajemen Kinerja (Planning Management Unit NIP 197012121998031002 and Performance Management Bureau) 2. Muchamad Yusuf, S.T., M.Si. Pusat Pasar Kerja (Labor Vice Chairman of Market Center) Project Managament NIP 196810311998031002 Unit 3. M. Farid Ma'ruf, ST., MT. Ph.D. Pusat Data dan Teknologi Head of Component A Informasi (Data Center and Activity NIP 19721223 199803 1 002 Information Technology) Implementation 4. Uditomo Marmadi, S.I.K. Set.Barenbang (Planning and Secretariat of Manpower Development Component A Activity NIP 198210022009121005 Agency Secretariat) 5. Andra Wisnu Artanto, S.E. Set.Barenbang Secretariat of Component A Activity NIP 198004042009121001 6. Hilman Nugroho, S.T. Set.Barenbang Secretariat of Component A Activity NIP 199503222020121017 7. Supriyadi, S. Kom.,M.M.SI Pusat Data dan Teknologi Head of Sub- Informasi Component A.1 Activity NIP. 19740423 200501 1 001 Implementation 8. Wahju Amri Perdana, A.Md Pusat Data dan Teknologi Member of Sub- Informasi Component A.1 Activity NIP. 19831016 200912 1 001 Implementation 22 9. Sangkan Soebagio, S.T. Pusat Data dan Teknologi Member of Sub- Informasi Component A.1 Activity NIP 197306192005011001 Implementation 10. Ananto Wijoyo, S.T. Pusat Data dan Teknologi Member of Sub- Informasi Component A.1 Activity NIP 198108282009121003 Implementation 11. Muhammad Ivandry, S.Kom. Pusat Pasar Kerja Member of Sub- Component A.1 Activity NIP 198601072009121001 Implementation 12. Pandu Isdiyanto, S.T., M.M. Pusat Pasar Kerja Member of Sub- Component A.1 Activity NIP. 197612312009121002 Implementation 13. Franciscus Anton Wirawan, S.Si, Pusat Data dan Teknologi Member of Sub- M.Si. Informasi Component A.1 Activity Implementation NIP. 198104022009011007 14. Dr. Mohammad Mustafa Pusat Perencanaan Tenaga Head of Sub- Sarinanto, M.Eng. Kerja (Manpower Planning Component A.2 Activity Center), Barenbang Implementation NIP 196805021988011001 15. Hikmat Ghazaly, S.Si., M.Si. Pusat Perencanaan Member of Sub- Ketenagakerjaan (Manpower Component A.2 Activity NIP 199103222014031003 Planning Center), Barenbang Implementation 16. Heril Chahyadi, S.T Pusat Perencanaan Member of Sub- Ketenagakerjaan, Barenbang Component A.2 Activity NIP 19890606 201502 1 003 Implementation 17. Gesta Diniarti, S.E. Pusat Perencanaan Member of Sub- Ketenagakerjaan, Barenbang Component A.2 Activity NIP 199206222019022010 Implementation 18. Ervin Jongguran Marajohan Pusat Pasar Kerja Member of Sub- S.E.Ak., M.Si Component A.2 Activity Implementation NIP 19760311 199903 1 004 19. Fitri Astuti, S.Psi., M.M. Pusat Pasar Kerja Head of Sub- Component A.3 Activity NIP 198001152006042002 Implementation 23 20. Sigit Aryprasetyo, S.E., M.A.P. Pusat Pasar Kerja Member of Sub- Component A.3 Activity NIP 198402262009011006 Implementation 21. Tri Pudji Astanti, B.Eng Dit. Penempatan Tenaga Kerja Member of Sub- Dalam Negeri (Domestic Component A.3 Activity NIP. 198212312007012001 Manpower Placement Implementation Directorate) 22. Syamsi Hari, S.E., M.M. Set. Ditjen Binalatvotas Head of Component B (Directorate General for Activity NIP 197403111998031001 Vocational and Productivity Implementation Training Secretariat) 23. Fikri Kurniakiki, B.Eng., M.Si. Set. Ditjen Binalatvotas Secretariat of Component B Activity NIP 198311222007011001 Implementation 24. Akhirudin, S.T., M.Ec.Dev. Set. Ditjen Binalatvotas Secretariat of Component B Activity NIP 198510042009121001 Implementation 25. Lola Herliana, S.S. Set. Ditjen Binalatvotas Secretariat of Component B Activity NIP 198603092009122003 Implementation 26. Retno Herawati, ST., MT. Set. Ditjen Binalatvotas Secretariat of Component B Activity NIP 19830419 200712 2 001 Implementation 26. Gilang Amaldi, B.Eng., M.M. Bina Penyelenggaraan Head of Sub- Pelatihan Vokasi dan Component B.1 Activity NIP 198701012009121001 Pemagangan (Implementor of Implementation Vocational Training and Apprenticeship), Lavotas 27. Arnov Tri Hartanto, B.Eng., Dit. Bina Stankomproglat Member of Sub- M.Sc. (Directorate of Competency Component B.1 Activity Standardization and Training Implementation NIP 198211142007011001 Programs), Lavotas 28. Widjanarko, S.Psi., M.Si. Dit. Bina Stankomproglat, Member of Sub- Lavotas Component B.1 Activity NIP 197412082003121001 Implementation 29. Mahambara Agung Dit. Bina Lavogan, Lavotas Member of Sub- Prabawa,SST Component B.1 Activity Implementation NIP 199111132015031003 24 30. Aris Hermanto, B.Eng., M.Si. Dit. Bina Kelembagaan Head of Sub- Pelatihan Vokasi, Lavotas Component B.2 Activity NIP 198212222007011001 Implementation 31. Aditya Wibawa Sampurna Dit. Bina Kelembagaan Member of Sub- Putra, ST Pelatihan Vokasi, Lavotas Component B.2 Activity Implementation NIP 198607072015031003 32. Heri Yanuar, ST. Dit. Bina Kelembagaan Member of Sub- Pelatihan Vokasi, Lavotas Component B.2 Activity NIP 198001102005011003 Implementation 33. Muhammad Taufik, S.ST. Sekretariat Direktorat Member of Sub- Jenderal Pembinaan Pelatihan Component B.2 Activity NIP 198702242019021002 Vokasi Implementation 34. One Herwantoko, S.Sos., M.Si. Biro Perencanaan dan Head of Component C Manajemen Kinerja Activity NIP 198607242011011008 Implementation 35. Wahyu Yudowibisono, S.T. Pusat Pasar Kerja Member of Component C Activity NIP 198510162009011004 36. Jeihan Hannissa, A.Md.M. Biro Umum (General Bureau) Member of Component C Activity NIP 199802272018122002 37. Nurwidiati, S.Sos. Biro Hubungan Masyarakat Member of Component (Community Relation Bureau) C Activity NIP 197305152005012001 38. Wikan Nurcahyanti, S.E. Biro Keuangan dan BMN Member of Component (Finance and State Property C Activity 198408202015032003 Bureau) 39. Ully Masyithah, S.S. Biro Organisasi dan Sumber Member of Component Daya Manusia Aparatur C Activity NIP 197807122006042002 (Bureau of Organization and Human Resources Apparatus) 40. Ratih Rullyanti, B.Eng., M.T.I. Biro Kerja Sama (Cooperation Member of Component Bureau) C Activity NIP 197911302003122003 41. Dhatun Kuswandari, S.H., M.H. Biro Hukum (Law Bureau) Member of Component C Activity NIP 196901121999032001 42. Asep Noor Hasan, S.Si., M.M. Inspektorat II (Inspectorate) Member of Component C Activity 25 NIP 197909012009121001 43. Primadita, S.T. M.Kessos Biro Perencanaan dan Member of Component Manajemen Kinerja C Activity NIP 198206112011012009 Stipulated in Jakarta On 12 September 2023 Secretary General Signed Anwar Sanusi, Ph.D. 26