A new labor law
A new labor law
Despite persisting controversy, the labor law which the House
of Representatives unanimously approved on Thursday after months
of public debate, unquestionably contains some significant
improvements over the draft as it was initially presented by the
government. To mention a few examples, the new labor law
recognizes the right for workers to go on strike, albeit with
certain provisions. Also, workers are allowed to form labor
unions in their respective factories or workplaces, and payment
by employers of certain benefits, such as Lebaran bonuses, is
made compulsory.
Although the principle of a balanced approach which recognizes
both the rights of the worker and the interests of the employer
is generally accepted, the earlier draft was felt by critics to
be too heavily in favor of employers. The initial draft, for
instance, allowed employers to withhold payment of wages to
workers who went on strike. Further, the earlier draft stipulated
that workers' unions could be formed in factories or workplaces
only when they are supported by the majority of workers.
This new law's very recognition of the basic right to strike
is a step in the right direction. It does, however, state that
this right may only be exercised within the confines of the
factory or workplace in which they have a dispute with the
management. Similarly, the provision that workers can form trade
unions only at their own places of work but not outside is seen
as an improvement.
Seen in this light, the support that has been given to the new
law by representatives of the government-sanctioned All-Indonesia
Workers Union Federation (FSPSI), is understandable. On the other
hand, it cannot be denied that, despite all the improvements, the
new labor law as passed by the House of Representatives on
Thursday, still heavily curtails the free exercise of workers'
basic rights. Under its provisions, solidarity strikes by
outsiders -- which are an important weapon for workers -- are as
good as impossible to hold. Also, workers must notify both their
employers and the government at least 72 hours in advance before
they go on strike.
The new law also requires trade unions to register themselves
and the names of all their members with the Ministry of Manpower.
Furthermore, by confining strikes to one place only -- the
factory or workplace where the dispute festers -- the new law
makes it difficult, though presumably not impossible, for workers
or labor activists to set up independent trade unions such as,
for example, the unsanctioned Indonesian Prosperous Labor Union
(SBSI). Hence the criticism voiced by activists that the new
labor law, even in its revised and improved form as passed on
Thursday, fails to guarantee workers' most basic rights.
Amid all this controversy, the government's intentions are
clear enough. They realize as well as anybody else that --
humanitarian considerations aside -- tranquility on the labor
front is vital for maintaining the stability that is necessary to
ensure continual development. On the other hand, obviously,
investors and employers need too to be assured that their
businesses will not be constantly disrupted by labor strikes.
Hence, the new labor law may be viewed as a compromise between
two related but often opposed interests. Obviously, under the
circumstances few parties, if any, will be entirely satisfied
with the product. As for the part which our House of
Representatives has played in the process, the great
transformation which the bill has undergone from first draft to
final form is indication enough that our national legislature
has, for once, done a pretty good job -- or at least the best
possible job, under the circumstances.
No doubt, in time, further improvements may be made as
developments dictate. Laws, after all, are not scriptures that
man cannot change for the better.