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Kongres Serikat Pekerja Indonesia Indonesian Trade Union Congress
Indonesian Country ReportIndonesian Country Report
Trade Union Training on IT with a focus on Networks Development”Bangkok , 11-15 December 2006
Aryo JudhokoAryo Judhoko
Consultant for Network and CooperativeConsultant for Network and Cooperative
SERIKAT PEKERJA NASIONALSERIKAT PEKERJA NASIONAL
NATIONAL WORKER TRADE UNIONNATIONAL WORKER TRADE UNION
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
Employment by Industry 2000 + unemployment rate 2000
0
5
10
15
20
25
30
35
40
45
Agricu
lture
, for
estry
, hun
ting,
fishe
ry
Man
ufactu
ring
Const
ructi
on
Whole
sale/
reta
il tra
de, r
esta
uran
ts, a
nd h
otels
Trans
porta
tion,
sto
rage
, com
mun
icatio
n
Financin
g, in
sura
nce,
real
esta
te, b
usines
s se
rvice
s
Comm
unity,
socia
l and
per
sona
l ser
vices
Oth
ers a
nd q
uarry
ing (m
inin
g, e
lectr
icity
, gas
, and
wat
er)
unem
ploym
ent r
ate
2000
pe
r c
en
t
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 Supply
32,747 18,469 16,867 12,964
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 Communication
2,220,002 2,473,556 2,573.,525 2,883,.232
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 minimum 10 workers regular & contractor workers
• Make Collective Bargaining and Agreement Have 50% + 1 of total workers
• Requirement Contractor Workers Limited jobs which are not regular
• Outsourcing Limited jobs are in Core Business
• Time Maximum Training for New workers 6 months
• Total Hours worker in Week 40 Hours
• Total Annual Leaves 12 days
• Maternity Leave (when got baby for women) 3 Months For this case Some Trade Union Refuse this labor Law
until Now, but the Government wants Revision this Labor Law become more worst.
How are the Unions handling delimits of Globalization and
regional integration :
Indonesian Workers Challenges
• Minimum Wage, 95 $ / per month
For Banking $95 + 8 %/month
• The large number of unemployeed
• The member of trade union are only 3.3 million
Member of Trade Union
Member of Trade Union
3%
Not Member TU
Indonesian Unemployeed
At 19974,7%
4.7 million
At 20006,12%
5.8 million
At 20029,06%
9.1 million
At 200510,9%
11.6 million
Indonesian Workers Challenges
• Outsourcing : teller, call center, marketing, Outsourcing : teller, call center, marketing, mall, factorymall, factory
• Privatization : telecomPrivatization : telecom• Merger : BankMerger : Bank• Bankrupt : textille, property, factoryBankrupt : textille, property, factory• Restructuring : printingRestructuring : printing• Factory moved to other country : Soni Factory moved to other country : Soni
Indonesia Indonesia Vietnamm Vietnamm• Change the Business : textile Change the Business : textile trading trading
Major Problem in Indonesia
• The big of amount Indonesia DebtThe big of amount Indonesia Debt
131billion $ ( 1 person have to guarantee 800$ )131billion $ ( 1 person have to guarantee 800$ )
30 % Budget of State to Paid Debt.30 % Budget of State to Paid Debt.• Corruption in Government Corruption in Government Corruption Together, Not Corruption Together, Not
Productive, Not EfficiencyProductive, Not Efficiency• Government Not Care Government Not Care Cutting Some Subsidy Cutting Some Subsidy• Influenced of Capitalism to Government by IMF, ADB, Influenced of Capitalism to Government by IMF, ADB,
World Bank.World Bank.• Law enforcement Law enforcement Many Case in Industrial Many Case in Industrial
RelationshipRelationship
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 ideologyNot Care with the other Issue the oriented movement is still materialistic
• Low Awareness of the membersWill 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
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