RI still has major problems in industrial relations

RI still has major problems in industrial relations

Ridwan Max Sijabat, The Jakarta Post, Jakarta

Despite a strong legal basis, Indonesia is still facing major
hurdles in developing harmonious industrial relations between
employers and workers, says a government official.

"Following the downfall of the repressive New order regime and
the beginning of the reform era in 1998, Indonesia has seen some
fundamental reforms in its labor laws, but there are still
numerous problems in promoting industrial harmony at the company
level," Director General for Industrial Relations at the manpower
ministry Muzni Tambusai said here on Monday.

Muzni explained that many employers had resisted reform and
were still paranoid about the presence of labor unions in their
plants, contributing to the more than 1,400 industrial disputes
in 2004 alone. "Many employers have prohibited their employees
from organizing and prohibited representation in leading trade
unions, a serious infringement of workers's basic rights
stipulated by Amended 1945 Constitution and ILO Convention No. 87
on Freedom of Association."

He added that most workers were uneducated and unskilled and
most labor unions were not set up by workers, which weakened
workers' productivity and bargaining power in their negotiations
with their employers.

"Almost 80 percent of the 120 million people in the work force
have not graduated from high school and as a result they have
little or no bargaining power in negotiations with their
employers. Most employers have declined to pay them salaries in
line with the core labor standards because of their low
productivity. This is a crucial problem for Indonesia, especially
with the implementation of free trade agreements in Southeast
Asia (AFTA) and the Asia-Pacific region over the next few years,"
he said.

In addition to the laws that allow freedom of association,
Indonesia has had at least three other important laws that
support a strong legal basis for better industrial relations. The
three are Law No. 13/2003 on Labor Development, Law No. 22/2004
on Labor Court and Law 10/2002 on Labor Inspection.

Muzni acknowledged that many industrial disputes had emerged
from misinterpretations of the labor laws and the absence of a
strong commitment from employers and workers to adopt a common
industrial relations procedure that would benefit both sides.

"It is not necessary to pit them against each other because
they have a common interests; to achieve progress in their
business and make profits. Both sides have their own rights and
obligations as stipulated by the laws and thereby they have to
work hand in hand to create a good corporate culture and
governance and develop harmonious industrial relations to achieve
their common goals," he said.

Many employers and workers have been involved in industrial
disputes because each side fights for their own interests without
looking at their own common goals, he added.

This major hurdles are part of a number of problems that will
be discussed in a tripartite summit scheduled to be held here on
Wednesday.

The national meeting that will be attended by some 500
participants from labor unions, the Indonesian Employers'
Association (Apindo) and the government. It will also feature a
number of economic and legal experts, law enforcers, activists
and employers.

Furthermore, the government will also pass out awards to 60
companies that achieved some progress in developing harmonious
industrial relations.

The one-day national meeting slated to be officially opened by
Vice President Jusuf Kalla is expected to improve the situation.

Muzni expressed his optimism that Indonesia would be able to
improve its labor relations record in line with the ongoing
development of strong fundamentals for a true democracy.

"For example, 64 percent of more than 1,400 industrial
disputes in 2004 were settled at the bipartite level and, with a
better concept of industrial relations, employers and workers are
expected to settle their disputes at the bipartite level to avoid
wasting money and time," he said.