Bargaining on overtime to address wage theft in Indonesia

Abstract

This paper examines how Collective Bargaining Agreements (CBAs) in Indonesia regulate working hours and overtime, and assesses their effectiveness in protecting workers' wage rights. Using data from CBAs within the Indonesian apparel sector, we analyze the content and structure of provisions related to standard working hours and overtime rates. To understand the gap between written agreements and actual practices, we utilize findings from the DecentWorkCheck survey completed by workers. Furthermore, the study investigates the potential of rigid arrangements within CBAs as mechanisms to address violations such as excessive working hours and wage theft. By evaluating clearly defined working hour provisions, we aim to determine whether such arrangements can enhance compliance and safeguard workers’ wage rights. The findings contribute to ongoing discussions on improving CBA design and enforcement, offering recommendations to bridge policy-practice gaps for stronger worker protection in Indonesia.