RI still has major problems in industrial relations<\/p>\n
Ridwan Max Sijabat, The Jakarta Post, Jakarta<\/p>\n
Despite a strong legal basis, Indonesia is still facing major
\nhurdles in developing harmonious industrial relations between
\nemployers and workers, says a government official.<\/p>\n
\"Following the downfall of the repressive New order regime and
\nthe beginning of the reform era in 1998, Indonesia has seen some
\nfundamental reforms in its labor laws, but there are still
\nnumerous problems in promoting industrial harmony at the company
\nlevel,\" Director General for Industrial Relations at the manpower
\nministry Muzni Tambusai said here on Monday.<\/p>\n
Muzni explained that many employers had resisted reform and
\nwere still paranoid about the presence of labor unions in their
\nplants, contributing to the more than 1,400 industrial disputes
\nin 2004 alone. \"Many employers have prohibited their employees
\nfrom organizing and prohibited representation in leading trade
\nunions, a serious infringement of workers's basic rights
\nstipulated by Amended 1945 Constitution and ILO Convention No. 87
\non Freedom of Association.\"<\/p>\n
He added that most workers were uneducated and unskilled and
\nmost labor unions were not set up by workers, which weakened
\nworkers' productivity and bargaining power in their negotiations
\nwith their employers.<\/p>\n
\"Almost 80 percent of the 120 million people in the work force
\nhave not graduated from high school and as a result they have
\nlittle or no bargaining power in negotiations with their
\nemployers. Most employers have declined to pay them salaries in
\nline with the core labor standards because of their low
\nproductivity. This is a crucial problem for Indonesia, especially
\nwith the implementation of free trade agreements in Southeast
\nAsia (AFTA) and the Asia-Pacific region over the next few years,\"
\nhe said.<\/p>\n
In addition to the laws that allow freedom of association,
\nIndonesia has had at least three other important laws that
\nsupport a strong legal basis for better industrial relations. The
\nthree are Law No. 13\/2003 on Labor Development, Law No. 22\/2004
\non Labor Court and Law 10\/2002 on Labor Inspection.<\/p>\n
Muzni acknowledged that many industrial disputes had emerged
\nfrom misinterpretations of the labor laws and the absence of a
\nstrong commitment from employers and workers to adopt a common
\nindustrial relations procedure that would benefit both sides.<\/p>\n
\"It is not necessary to pit them against each other because
\nthey have a common interests; to achieve progress in their
\nbusiness and make profits. Both sides have their own rights and
\nobligations as stipulated by the laws and thereby they have to
\nwork hand in hand to create a good corporate culture and
\ngovernance and develop harmonious industrial relations to achieve
\ntheir common goals,\" he said.<\/p>\n
Many employers and workers have been involved in industrial
\ndisputes because each side fights for their own interests without
\nlooking at their own common goals, he added.<\/p>\n
This major hurdles are part of a number of problems that will
\nbe discussed in a tripartite summit scheduled to be held here on
\nWednesday.<\/p>\n
The national meeting that will be attended by some 500
\nparticipants from labor unions, the Indonesian Employers'
\nAssociation (Apindo) and the government. It will also feature a
\nnumber of economic and legal experts, law enforcers, activists
\nand employers.<\/p>\n
Furthermore, the government will also pass out awards to 60
\ncompanies that achieved some progress in developing harmonious
\nindustrial relations.<\/p>\n
The one-day national meeting slated to be officially opened by
\nVice President Jusuf Kalla is expected to improve the situation.<\/p>\n
Muzni expressed his optimism that Indonesia would be able to
\nimprove its labor relations record in line with the ongoing
\ndevelopment of strong fundamentals for a true democracy.<\/p>\n
\"For example, 64 percent of more than 1,400 industrial
\ndisputes in 2004 were settled at the bipartite level and, with a
\nbetter concept of industrial relations, employers and workers are
\nexpected to settle their disputes at the bipartite level to avoid
\nwasting money and time,\" he said.<\/p>",
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