Kongres Serikat Pekerja Indonesia Indonesian Trade Union Congress Indonesian Country Report Trade Union Training on IT with a focus on Networks Development”

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