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22 Feb 2021

Mitsubishi Corporation RtM Japan Ltd's response

Thank you for contacting us regarding this matter concerning former employees of P.T. Smelting (PTS), an Indonesian company in which Mitsubishi Corporation RtM Japan Ltd. (RtM), a wholly owned subsidiary of Mitsubishi Corporation (MC), holds a 9.5% stake.

Both MC and RtM are guided by a policy of respecting the freedom of association and right to collective bargaining, and comply with and respect the laws, regulations and labor practices of our host countries. Regarding the matter at hand, PTS shareholder RtM has informed us of the following:

  • PTS and the labor union PUK SPL FSPMI (PUK) agreed to a one year extension of the existing labor contract in January 2017. PTS expressed its intention to PUK to commence negotiations to renew the contract in July 2017, however PUK declined this offer and entered into a strike. 
  • Indonesian law only regards strikes as legal in the event that the parties’ labor negotiations result in a deadlock. As these negotiations had not resulted in a deadlock, PTS notified PUK members of the illegality of the strike and requested that they return to work. 308 PUK members declined this request and were thus deemed to have voluntarily resigned from PTS in accordance with Indonesian law. Subsequently, PTS terminated the insurance payments to the concerned individuals as well as their membership from the Health Social Security Agency (BPJS Kasehatan) and the Employees Social Security System (BPJS Ketenagakerjaan). 
  • In December 2017 the labor court of Gresik Regency in Indonesia ruled to confirm both the illegality of the strike as well as the legality of the termination of employment resulting from voluntary resignation. The Indonesian Supreme Court subsequently affirmed this ruling in May 2018.