Wed, 04 May 1994

ILO to help with labor reform in Indonesia

JAKARTA (JP): The International Labour Organization (ILO) yesterday pledged to help Indonesia reform its labor laws to meet international standards and principles.

Visiting ILO Deputy Director General Heribert Maier and Minister of Manpower Abdul Latief signed an agreement under which the Geneva-based organization will provide expertise as Indonesia revamps its labor legislation to ensure better distribution of wealth.

The events of the past few years in Indonesia have shown the evolution of industrial relations has not kept pace with the rapidly developing economy and industry, Maier said during the signing ceremony.

"There is a clear need for Indonesia to elaborate a comprehensive labor code," he said adding that reforms are a pre- requisite for the success of Indonesia's Second Long-Term Development Plan.

The ILO will provide policy advice, technical cooperation projects and analytical studies and information.

Maier arrived here on Sunday for a five-day visit to preside over a series of activities organized by the ILO representative office in Jakarta in connection with the organization's 75th anniversary. ILO is a UN agency whose aim is to establish international labor standards to improve worker's welfare.

With a permanent staff of over 3,000, the ILO currently has the membership of 169 states. Indonesia became a formal member of the organization in 1950.

Minister Latief said after the signing that the government is concerned with the consistent use of policies on workers' rights. "That's why we've invited the expertise of the ILO to support us," he said.

Latief said the ILO programs must conform to local labor conditions, stressing the need to protect national values.

"As a developing country facing some very unique problems, I hope the ILO and the developed countries can understand the obstacles we are facing," he said.

Maier said a team of ILO lawyers who came here to analyze and make proposals for yesterday's agreement found Indonesia in urgent need of a comprehensive labor code.

"The labor code is such that it is made-up of pieces rising out of the past 30 to 40 years ... Some of the elements are conflicting (with each other)," he said.

Both Latief and Maier agreed that Indonesia is in a transitional stage and the remnants of colonial law help create problems.

Maier said President Soeharto, whom he met earlier in the day has also given his blessing. "President Soeharto has confirmed his commitment to harmonizing industrial relations."

SBSI

Speaking during a seminar lunch yesterday, Maier explained that one of the fundamental requirements of the industrial relations being sought was the recognition of trade unions.

"The right of workers and employers to establish trade unions and employers organizations of their own choosing," Maier said is essential.

It is the responsibility of the government to ensure that trade union representatives are democratically elected, he said.

But the ILO deputy director was careful when asked to comment on the Indonesian Prosperous Labor Union (SBSI), the independent organization which is challenging the government's policy of only allowing its All Indonesian Workers Union (SPSI) to represent workers in disputes with managements.

Maier, who was sitting next to Latief, said the ILO would not interfere on the issue, stressing that it was for the Indonesian government to resolve. "It's not a problem for our organization."

Maier admitted that the ILO maintains contact with several labor organizations but stressed that it is the government, and not the ILO's job, to grant official recognition.(07)