Source of Report

Issues

Based on the news coverage, there is a labor-related issue concerning activities referred to as community work (“gotong royong”) within PT Gelora Mandiri Membangun (GMM), with the following key points:

  • Employee participation in these activities is reported to not be entirely voluntary, as employees from various departments are requested to be involved, including on rest days, creating a perception that participation is mandatory.
  • There is a lack of clarity regarding the status and incentives for work performed outside normal working hours, including the provision of overtime pay for employees involved.

Steps taken

The ESG Team of TSE Group conducted an internal review regarding the news coverage related to additional activities carried out outside working hours. Based on the findings of the review, management initially intended to request support from several workers for improvement and maintenance activities within the plantation operational area, which at the time was understood by the Company as a form of voluntary participation or assistance.

Regarding incentives, PT GMM applies mechanisms in accordance with each worker’s employment scheme. Workers under the regular employment scheme had received incentives in accordance with applicable provisions. Meanwhile, for workers under the all-in scheme, there were differences in understanding between the Company and the workers regarding the scope of incentives regulated under each party’s employment agreement.

In response to the feedback received, the Company conducted discussions and clarification sessions with the workers on the applicable incentive mechanism, and both parties acknowledged and reached a mutual understanding on the matter. Subsequently, the company carried out a recap of the participation of workers under the all-in scheme in activities outside working hours and realized a one-time incentive payment on 7 May 2026 to 18 workers.

Result

PT GMM conducted a Bipartite Cooperation Institution (LKS Bipartit) meeting on 9 May 2026 as a communication forum between management and worker representatives. The meeting discussed labor and operational aspects with the following outcomes:

  • Confirmation
    • Incentive payments were realized on 7 May 2026 for workers involved in activities conducted outside normal working hours.
  • Agreements for Similar Activities in the Future
    • Participation in additional operational activities outside working hours shall be voluntary. Workers willing to participate will provide their consent, while workers who choose not to participate will not face any consequences.
    • Workers under the all-in employment scheme will receive additional incentives as a form of appreciation for their contribution to such activities, considering that additional work incentives have already been covered under their respective incentives structure.
    • The Company will provide meals for workers involved in additional activities exceeding 4 working hours, in accordance with applicable laws and regulations.

Through the LKS Bipartit forum, the Company and worker representatives agreed to continue improving coordination, communication, and compliance with labor regulations to create a safe, conducive, and productive working environment.