Most workers unrepresented by unions

Most workers unrepresented by unions

Ridwan Max Sijabat, The Jakarta Post, Jakarta

Minister of Manpower and Transmigration Jacob Nuwa Wea regretted
the low awareness of workers about unionization, since only 20
percent of the more than 40 million workers employed in the
formal sector have unionized, despite the reform era.

This statistic has raised a major question on the existence of
72 labor unions already registered with the manpower ministry
with a deep concern over the workers' bargaining power in
bipartite negotiations with employers.

Although 72 unions have been registered so far, the majority
of workers are not represented.

Speaking at an informal meeting with the National Tripartite
Institution representing workers, employers and the government,
Nuwa Wea said that out of approximately 100,000 companies with
around 40 million workers in Indonesia, only 16,000 companies
employing more than eight million workers have labor unions.

"This means that the 72 labor unions registered with the
manpower ministry have competed to represent and fight for the
eight million workers employed in the 16,000 companies.

"And it is not surprising to receive reports that a cigarette
factory has 17 labor unions. This will pose many problems as to
which labor union the cigarette company will negotiate with, when
the management is involved in industrial disputes with its
workers," he said.

Nuwa Wea, also chairman of the Confederation of All-Indonesian
Workers Union (KSPSI), said that besides the fact that many
companies had difficulties appointing labor unions with whom they
would work to draw up collective labor agreements (KKB), it was
also a fact that the majority of workers had weak bargaining
power since they were not represented and had no collective labor
agreement with their own management.

The minister called on labor unions to expand to companies
whose workers had yet to set up unions in an effort to strengthen
their bargaining power, especially in making collective labor
agreements.

A collective labor agreement, which the Labor Law requires to
be renewed biannually, regulates remuneration, overtime rates,
dismissals, layoffs and severance pay, and many other industrial
relation issues. Articles in the agreement are usually better for
workers than those set by the government.

Nuwa Wea acknowledged that he found it difficult to appoint
workers' representatives in tripartite bodies such as the
National Tripartite Institution, the National (Tripartite) Waging
Body and the Central (Tripartite) Industrial Dispute Settlement
Committee (P4P).

"In the tripartite bodies, the government has decided to give
seats proportionally to the three major labor unions -- KSPSI,
the Confederation of Indonesian Prosperous Labor Union (KSBSI)
and the Indonesian Workers Union Congress (KSPI)," he said
without elaborating as to the size of their membership.

During the 32-year dictatorial regime of Soeharto, only the
All-Indonesian Workers Union (SPSI), which was backed by the
government, was allowed to represent workers, and most industrial
disputes were settled with the help of security authorities.

Following Soeharto's downfall in May 1998, Indonesia ratified
ILO (International Labor Organization) Convention No. 98
guaranteeing workers' right to unionize.