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COUNTRY SITUATION REVIEW

COUNTRY SITUATION REVIEW . Group work 1. 1. The Impact of the crisis. Increasing workers contract and daily workers Flexible time and flexible job Reducing number of permanent staff & increasing informal sector Lay off 237.000 Worker(Oct’08) – (Mar’09)

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COUNTRY SITUATION REVIEW

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  1. COUNTRY SITUATION REVIEW Group work 1

  2. 1. The Impact of the crisis • Increasing workers contract and daily workers • Flexible time and flexible job • Reducing number of permanent staff & increasing informal sector • Lay off 237.000 Worker(Oct’08) – (Mar’09) • Wage Mechanism System is not function labours are most dependently on MW increase • Lack of labor inspection by the government • On October 2008, due to economic crisis, Government Launching 4 Joint Ministerial Decree, said that all governors in Indonesia have to increase minimum wage under 6 %

  3. Union Respond to Joint Ministerial Decree • Union refused Joint Ministerial Decree by doing massive demonstration around province. Union call for wage increasement up to 10%. • The government finally failed to implement the joint ministrial decree due to a very strong refusementfrom the union. • Concerning the wage  the union representative on national wage council proposed MW based not just on single basis but on family status until K-2 (family two child).

  4. 2. Legal Protection • During Reformasi era started in 1998, Indonesia has passed 3 packaged of labour law (law No. 21/2000 (concerning of trade union), law No. 13/2003 (Manpower) and Law No 2/2004 of Dispute Settlement. Indonesia also has ratified 8 ILO labour core convention. • Right to Organize in Act no. 21/2000 (penal sanction for the companies against article 28 and 43) • Right to Organize and Negotiate/Bargain in Act 13/2003. • Right to Strike Ministry of Manpower Decree number 232/KEP/Men/2004 • Social security for workers in Act. No 3. 1992 • Compensation in Act 13/2003. • Draft Act for Domestic workers

  5. Who is not covered by labor law? • Informal sectors; home industry workers, self employee, domestic workers. • existing labour law  law No 21/2000, Law No 13/2003, and law No 2/2004

  6. The Priorities Of Trade Union In Asian Region • Organized precarious workers on formal sectors • Organized worker on informal sector. • More active & effective organizing in grass root level. • Change union movement from labor movement to the social movement. • Labor Social Security • Law enforcement and labor inspection.

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