Labor Relation and Collective Bargaining [in Indonesia Perspective]

1. Labor Relation and Collective Bargaining[in Indonesia Perspective] By Daniel Damaris Novarianto S.

2. Legislation on Labor Standards Act No.21 of 2000 Concerning Trade Union/Labor Union Legislation on Labor Standard in Indonesia NOW!! Act No.13 of 2003 Concerning Manpower Act No. 2 of 2004 Concerning Industrial Relations Dispute Settlement

3. Understand the Union • A union is an organization of workers, acting collectively, seeking to promote and protect its mutual interests through collective bargaining

4. The Principe of Union • The Trade Union/Labor Union • Each workplace union must have at least 10 workers as members. • A union can be established by workers within a company and its branches

5. The Principe of Union (cont.) • The common practice in Indonesia is that unions are generally established at the company level with membership of the workers in that company • Trade unionsat the workplace level, federations of unions, and confederations of unions

6. The Principe of Union (cont.) • Each workplace union must have at least 10 workers as members • Unions may form and become members of a federation of unions. A federation must be formed by at least 5 unions • Federations may form and become members of a confederation of unions. A confederation must be formed by at least 3 federations

7. The Principe of Union (cont.) • Trade unions, federations and confederations may be established on the basis of a particular business sector, type of work or any other categories determined by the workers • The only prohibition on the right to organize concerns members of military personnel andpolice

8. The Principe of Union (cont.) • Civil servants are able to organize but subject to special regulations. Currently there isonly one organization for civil servants, namely KOPRI (Korps Pegawai Republik Indonesia) • A worker is not allowed to become a member of more than one union at an enterprise

9. The Principe of Union (cont.) • A union, federation or confederation must notify the local government agency responsible for labor affairs (Disnaker) • The Disnaker must keep a record of the union, federation and confederation which has fulfilled the requirements and issue a registration number to the union, federation and confederation within 21 working days after the receipt of the notification

10. The Principe of Union (cont.) • When a union, federation, confederation has not met the requirements, the reasons for refusing the recording and issuance of the registration number must be given within 14 working days after the receipt of the notification • If not, the application shall be returned to the applicant

11. The Principe of Union (cont.) • Trade unions, federations and confederations may be dissolved, if: • The enterprise has closed down resulting in the termination of all employment relationships and the employer has met all obligations to those workers • Its statutory basis is contrary to the Pancasila and the 1945 Constitution • Its administrators or members have been convicted of certain crimes against State security

12. Employers Organization • APINDO (The Employers Association of Indonesia) • APINDO has a national structure which mirrors that of the government and trade unions, with regional administrative councils at the provincial level, as well as branch-level councils in industrial cities and districts • APINDO’s services to members include consultation, advocacy, education, information and representation in various tripartite structures

13. Employers Organization • KADIN (The Indonesian Chamber of Commerce) • Concerns with general commercial issues rather than industrial relations • KADIN is frequently involved in discussions both at the national and provincial levels, often alongside APINDO

14. Collective Bargaining • The negotiation, administration, and interpretation of a written agreement between two parties, at least one of which represents a group that is acting collectively, that covers a specific period of time.

15. Collective Bargaining Process

16. Collective Bargaining Process (cont.)

17. Other Issue in Act No.13 of 2003 About Concerning Manpower

18. Employ the Children • Entrepreneurs are not allowed to employ children • But the entrepreneurs can employ the children agedbetween 13 years old and 15 years old for light work as long as the job does not stunt or disrupt their physical, mental and social developments as well as their education and attendance at school • Children may work or have a job in order to develop their talents and interest

19. Employ the Children (cont.) • Entrepreneurs get permission from the parents of children • The entrepreneurs must not require the children to work longer than 3 hours a day. • The children’s workplace must be kept separate from that for adult workers/laborers

20. Employ the Women • It is prohibited to employ female workers/laborers aged less than 18 years of age and the pregnant female workers/ laborers between 11 p.m. until 7 a.m. • If the female workers work between 11 p.m. until 7 a.m., the entrepreneurs must provide them with nutritious food and drinks, to maintain decency/morality and security in the workplace • Entrepreneurs must be provide return/ roundtrip transport for female workers/laborers who work between 11 p.m. until 5 a.m. • Etc.

21. Working Hours • 7 hours a day and 40 hours a week for 6 workdays in a week, or • 8 hours a day and 40 hours a week for 5 workdays in a week

22. Bipartite Cooperation • A forum for communication, consultation, and deliberation on labor issues at an enterprise • Membership: • the entrepreneur’s representatives and • the worker/ laborer’s representatives

23. Tripartite Cooperation • Provide considerations, recommendations and opinions to the government and other parties involved in policy making and problem solving concerning labor issues • The National Tripartite Cooperation Institute and the Provincial, District/City TripartiteCooperation Institutes

24. Tripartite Cooperation (cont.) • Memberships: • The Government • The Entrepreneur’s Organization • The Trade/Labor Union

25. Collective Work Agreement • Contains: • The rights and obligations of the employer; • The rights and obligations of the trade/labor union and the worker/laborer; • The period during which and the date starting from which the collective work agreement takes effect; and • The signatures of those involved in making the collective work agreement.

26. Strike • Why? • Because the negotiation is failed • But strike shall be carried out legally, orderly and peacefully • Within a period of no less than 7 days prior to the actual realization of a strike, workers and trade unions intending to stage a strike are under an obligation to give a written notification of the intention to the entrepreneur and the local government agency responsible for manpower affairs

27. Solution for Strike • Lockout, or • Negotiation via tripartite cooperation institution until get the consensus

28. Pay the Dismissed Workers

29. Rewarding the Dismissed Workers

30. Other Compensation for the Dismissed Workers

31. Debates on the Future Development of Collective Bargaining • Capacity Building of the Social Partners and Government • Lack of Respects and Cooperation among the Parties • Lack of Labor Inspectors

32. Thank You !