Kongres Serikat Pekerja Indonesia Indonesian Trade Union Congress

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					Kongres Serikat Pekerja Indonesia
Indonesian Trade Union Congress


 Indonesian Country Report


                    Aryo Judhoko
       Consultant for Network and Cooperative
           SERIKAT PEKERJA NASIONAL
         NATIONAL WORKER TRADE UNION




Trade Union Training on IT with a focus on Networks Development”
           Bangkok , 11-15 December 2006
           Agenda
1. Introduction
2. Adaptation to drastic changes in the labour
   market
3. How are the Unions handling delimits of
   Globalization and regional integration
4. ITUC Profile
5. IT on Trade Union
  Global Condition in Indonesia
          Introduction

• Independence from Colonialism August, 17
  1945
• Have population around 220 million peoples.
• Have many island, 17.300 islands
• Have different cultured, language, Religious,
  (The Majority is Moslem, around 80 % )
• Total of workers (formal and indformal)      :
  106.9 million
                                                                                         per cent
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                                                                                                           unemployment rate 2000




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                                                                                                         Employment by Industry 2000 +




                                                                          20
                                                                               00
      Informal workers by industry 1997 - 2002

Main Industry                       1997           1999           2001          2002

(1)                                 (2)            (3)            (4)           (5)

Agriculture                         29,.972,.910   32,.307,.276   36,027,.502   37,.321,006

Mining & Quarrying                  367,376        278,657        401,376       277,881

Manufacturing                       3,415,751      3,577,520      2,940,692     3,155,917

Electricity, Gas, and     Water
                                    32,747         18,469         16,867        12,964
Supply

Construction                        652,455        522,579        1,529,028     2,199,153

Trade                               10,464,901     10,726,260     10,052,605    10,036,112

Transport,    Storage         and
                                    2,220,002      2,473,556      2,573.,525    2,883,.232
Communication

Financial & Corporate Services      71,512         63,053         59,401        31,806

Social & Community Services         2,768,840      2,631,414      2,205,202     2,058,531

All Sectors                         49,966,494     52,598,784     55,806,198    57,976,602
Adaptation to drastic changes
    in the labour market
Situation in Indonesia:
   – Fourth largest population in the world (210 million)
   – Low-cost producer (“cheap labour”) but nascent
     emergent democratic union movement post-Suharto
   – Rapid growth pre 1997
      • Women largely in “traditional roles”
   – Effects of Asian crisis
      • Role of IMF and World bank
   – Influence of informal sector
      • Lack of welfare system; widespread poverty
Social Protection in Indonesia


 • Government give an electric subsidy
 • Government give an education subsidy Until
   Elementary School
 • Government give a health subsidy For Poor
   Family
  Indonesian Labor Law
• Established Trade Union        • Time Maximum Training for
                                   New workers
   minimum 10 workers
                                    6 months
   regular & contractor
  workers                        • Total Hours worker in Week
• Make Collective Bargaining        40 Hours
  and Agreement                  • Total Annual Leaves
   Have 50% + 1 of total           12 days
  workers                        • Maternity Leave (when got
• Requirement Contractor           baby for women)
  Workers                           3 Months
   Limited jobs which are not
  regular                          For this case Some Trade
• Outsourcing                      Union Refuse this labor Law
   Limited jobs are in Core       until Now, but the
  Business                         Government wants Revision
                                   this Labor Law become
                                   more worst.
How are the Unions handling
 delimits of Globalization and
     regional integration :
Indonesian Workers Challenges

                                                Indonesian Unem ployeed
                                                                         At 1997
• Minimum Wage, 95 $ /            At 2005
                                                                          4,7%
                                                                        4.7 million
  per month                        10,9%
                                                                                       At 2000
                                 11.6 million
                                                                                        6,12%
  For Banking $95 + 8 %/month                                                        5.8 million

• The large number of
  unemployeed                                              At 2002
                                                            9,06%
• The member of trade                                     9.1 million

  union are only 3.3
                                                Mem ber of Trade Union
  million                                            Member of
                                                     Trade Union
                                                         3%




                                                     Not Member
                                                         TU
 Indonesian Workers Challenges

• Outsourcing : teller, call center, marketing,
  mall, factory
• Privatization : telecom
• Merger : Bank
• Bankrupt : textille, property, factory
• Restructuring : printing
• Factory moved to other country : Soni
  Indonesia  Vietnamm
• Change the Business : textile  trading
Major Problem in Indonesia

• The big of amount Indonesia Debt
  131billion $ ( 1 person have to guarantee 800$ )
   30 % Budget of State to Paid Debt.
• Corruption in Government  Corruption Together, Not
  Productive, Not Efficiency
• Government Not Care  Cutting Some Subsidy
• Influenced of Capitalism to Government by IMF, ADB,
  World Bank.
• Law enforcement  Many Case in Industrial
  Relationship
  Impact of Globalization

• The Concept of Global Market
  Unlimited border country in global Market & Only Good
  & Big Company have opportunity to win global
  competition

• Flexibility of Labor Market
  Change the status of employees, its aim to cut /
  dismissed labor easily

• Changed The State’s Concept
  The function of state is only to protect Interested
  Capitalism with forced labor
Revision Plan of Labor Law


• Contract extension from 3 years to 5 years
  Unlimited position and kind of job 
  accounting, marketing also can be contrated
• Unlimited Outsourcing  unlimited kind of job
• No retirement Payment for mages up $120
• Limitation of Retirement Payment
The Weakness of Labor Movement


• Not have a strong ideology
  Not Care with the other Issue  the oriented
  movement is still materialistic
• Low Awareness of the members
  Will active if they have a problem  no
  good commitment from grass root
• Weakness Education
  Good Education Limited on Leader Trade
  Union
      ITUC Action Plan

• Build the Grass Root
   Organize, maintenance & encourage members
  in Grass Root
• Makes an excellent Collective Bargaining and
  Agreement
   To be protected in Company Level
• Lobby Parliament
   Get Support from parliament to Support Labor
  Movement
• Build Alliances with other civil movement, build
  action together if there have some same idea
             ITUC Profile

• There are 3 National Trade Union Center
  (National Confederation) : KSPSI, KSBSI
  and KSPI.
• Kongres Serikat Pekerja Indonesia or
  Indonesian Trade Union Congress (ITUC)
  Established 2001 by 10 Federation, and
  have almost 2,000,000 member. In Global
  Federation  affiliated to ICFTU.
•     Established 2001 by 10 Federation :
1.    PGRI = education sector affiliated to Education International
2.    SPN = textile & garment sector affiliated to ITGWF
3.    ASPEK Indonesia = services sector affiliated to UNI
4.    SPMI = metal, electronic and automotive sector affiliated to IMF
5.    KAHUTINDO = wood and rattan sector affiliated to IBBWF
6.    FARKES = pharmacy and health sector affiliated to PSI
7.    KEP = chemical, energy and mining sector affiliated to ICEM
8.    ISI = cement industry sector
9.    PPMI = graphic, publishing and media sector
10.   Pariwisata = Tourism sector
              IT on ITUC

• ITUC have not website.
• From ITUC member, only ASPEK
  Indonesia who have an official website.
• For correspondence, it is a common all the
  member have their email address.
• There is not yet programmed to TV
 Thank You 