labor union

1. Company
LOGO
Labor Relation and
Collective Bargaining
[in Indonesia Perspective]
By Daniel Damaris Novarianto S.

2. Legislation on Labor Standards
Act No.21 of 2000
Concerning Trade Union/Labor Union
Act No.13 of 2003
Concerning Manpower
Act No. 2 of 2004
Concerning Industrial Relations
Dispute Settlement
Legislation on
Labor Standard
in Indonesia
NOW!!

3. Understand the Union
• A union is an organization of workers, acting
collectively, seeking to promote and protect its
mutual interests through collective bargaining

4. The Principe of Union
• The Trade Union/Labor Union
• Each workplace union must have at least 10
workers as members.
• A union can be established by workers within
a company and its branches

5. The Principe of Union (cont.)
• The common practice in Indonesia is that
unions are generally established at the
company level with membership of the
workers in that company
• Trade unions at the workplace level,
federations of unions, and confederations of
unions

6. The Principe of Union (cont.)
• Each workplace union must have at least 10
workers as members
• Unions may form and become members of a
federation of unions. A federation must be
formed by at least 5 unions
• Federations may form and become members of
a confederation of unions. A confederation
must be formed by at least 3 federations

7. The Principe of Union (cont.)
• Trade unions, federations and confederations
may be established on the basis of a particular
business sector, type of work or any other
categories determined by the workers
• The only prohibition on the right to organize
concerns members of military personnel and
police

8. The Principe of Union (cont.)
• Civil servants are able to organize but subject
to special regulations. Currently there is
only one organization for civil servants,
namely KOPRI (Korps Pegawai Republik
Indonesia)
• A worker is not allowed to become a member
of more than one union at an enterprise

9. The Principe of Union (cont.)
• A union, federation or confederation must
notify the local government agency
responsible for labor affairs (Disnaker)
• The Disnaker must keep a record of the union,
federation and confederation which has
fulfilled the requirements and issue a
registration number to the union, federation
and confederation within 21 working days
after the receipt of the notification

10. The Principe of Union (cont.)
• When a union, federation, confederation has
not met the requirements, the reasons for
refusing the recording and issuance of the
registration number must be given within 14
working days after the receipt of the
notification
• If not, the application shall be returned to the
applicant

11. The Principe of Union (cont.)
• Trade unions, federations and confederations
may be dissolved, if:
– The enterprise has closed down resulting in
the termination of all employment
relationships and the employer has met all
obligations to those workers
– Its statutory basis is contrary to the Pancasila
and the 1945 Constitution
– Its administrators or members have been
convicted of certain crimes against State
security

12. Employers Organization
• APINDO (The Employers Association of
Indonesia)
– APINDO has a national structure which mirrors
that of the government and trade unions, with
regional administrative councils at the provincial
level, as well as branch-level councils in industrial
cities and districts
– APINDO’s services to members include
consultation, advocacy, education, information and
representation in various tripartite structures

13. Employers Organization
• KADIN (The Indonesian Chamber of
Commerce)
– Concerns with general commercial issues rather
than industrial relations
– KADIN is frequently involved in discussions both
at the national and provincial levels, often
alongside APINDO

14. Collective Bargaining
• The negotiation, administration, and
interpretation of a written agreement between
two parties, at least one of which represents a
group that is acting collectively, that covers a
specific period of time.

15. Collective Bargaining Process

16. Collective Bargaining Process
(cont.)

17. Other Issue in Act No.13 of 2003
About Concerning Manpower

18. Employ the Children
• Entrepreneurs are not allowed to employ children
• But the entrepreneurs can employ the children aged
between 13 years old and 15 years old for light work
as long as the job does not stunt or disrupt their
physical, mental and social developments as well as
their education and attendance at school
• Children may work or have a job in order to
develop their talents and interest

19. Employ the Children (cont.)
• Entrepreneurs get permission from the parents of
children
• The entrepreneurs must not require the children to
work longer than 3 hours a day.
• The children’s workplace must be kept separate from
that for adult workers/laborers

20. Employ the Women
• It is prohibited to employ female workers/laborers
aged less than 18 years of age and the pregnant
female workers/ laborers between 11 p.m. until 7 a.m.
• If the female workers work between 11 p.m. until 7
a.m., the entrepreneurs must provide them with
nutritious food and drinks, to maintain
decency/morality and security in the workplace
• Entrepreneurs must be provide return/ roundtrip
transport for female workers/laborers who work
between 11 p.m. until 5 a.m.
• Etc.

21. Working Hours
• 7 hours a day and 40 hours a week for 6
workdays in a week, or
• 8 hours a day and 40 hours a week for 5
workdays in a week

22. Bipartite Cooperation
• A forum for communication, consultation, and
deliberation on labor issues at an enterprise
• Membership:
– the entrepreneur’s representatives and
– the worker/ laborer’s representatives

23. Tripartite Cooperation
• Provide considerations, recommendations and
opinions to the government and other parties
involved in policy making and problem
solving concerning labor issues
• The National Tripartite Cooperation Institute
and the Provincial, District/City Tripartite
Cooperation Institutes

24. Tripartite Cooperation (cont.)
• Memberships:
– The Government
– The Entrepreneur’s Organization
– The Trade/Labor Union

25. Collective Work Agreement
• Contains:
– The rights and obligations of the employer;
– The rights and obligations of the trade/labor
union and the worker/laborer;
– The period during which and the date starting
from which the collective work agreement
takes effect; and
– The signatures of those involved in making
the collective work agreement.

26. Strike
• Why?
• Because the negotiation is failed
• But strike shall be carried out legally, orderly and
peacefully
• Within a period of no less than 7 days prior to the
actual realization of a strike, workers and trade unions
intending to stage a strike are under an obligation to
give a written notification of the intention to the
entrepreneur and the local government agency
responsible for manpower affairs

27. Solution for Strike
• Lockout, or
• Negotiation via tripartite cooperation
institution until get the consensus

28. Pay the Dismissed Workers

29. Rewarding the Dismissed
Workers

30. Other Compensation for the
Dismissed Workers

31. Debates on the Future Development
of Collective Bargaining
• Capacity Building of the Social Partners and
Government
• Lack of Respects and Cooperation among the
Parties
• Lack of Labor Inspectors

32. Company
LOGO