Indonesian Political, Business & Finance News

Trade unions are part of social infrastructure

Trade unions are part of social infrastructure

JAKARTA (JP): Free trade unions are an important part of an industrial society's infrastructures, director of the International Labor Organization's Jakarta office, Herman van der Laan, said yesterday.

Van der Laan warned that continued repression of labor unions may have detrimental effects on the long term growth of a nation, including Indonesia.

If trade unions were denied their role in society, "it is most likely to become a break in Indonesia's development," he said during the presentation of the organization's newly released report, World Employment 1995.

The organization's report included finding a connection between the repression of trade unions to economic failures or successes in developing countries.

The report is the first comprehensive analysis on the effects of the globalization of production, employment and trade. It was published as a guideline for the upcoming World Summit on Social Development in Copenhagen from March 6 to 12.

President Soeharto will lead the Indonesian delegation which will include officials from both government and Non-Governmental Organizations.

"Was the repression of trade unions a component of the Asian development model? If so, was it necessary for economic success?" the report asked.

The 200-page report found that "trade union freedoms were indeed curtailed in many Asian countries." However, it was dubious on the second question.

Despite the report's inconclusive findings, Van der Laan argued that once a developing nation reaches a particular stage, then unions become a necessity.

"Up to a certain level of economic development, it becomes counter productive," he said on the toleration towards such restraints.

Elaborating further on the objectives of the upcoming Social Development Summit, Van der Laan said that through the report the organization was advocating the need for full employment.

"Social and economic progress can only be achieved if the full potential of the adult population is utilized," he explained.

Among the policies being set forth by the organization are a set of internationally coordinated macro economic policies along with adjustments at the national level in relation to the growth augmenting benefits of the global economy.

The final policy components necessary are socially enlightened policies which uplift labor standards and deal with long term unemployment, poverty and income distribution.

"This is the organization's contribution to the discussions in the summit," Van der Laan said. (mds)

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