Indonesian Trade Union Developments Since the Fall of Suharto Michele Ford
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east asia LLa bour andm Mana g ementd in DDee v elopmenelopmentt JourJouJour r nalnanal l Volume 1, Number 3 Research note: Indonesian trade Eunion developments since the fall of Suharto Michele Ford 99-2 Asia Pacific Press at the AUSTRALIAN NATIONAL UNIVERSITY http://ncdsnet.anu.edu.au Research note: Indonesian trade union developments since the fall of Suharto Michele Ford © Asia Pacific Press 2000 This work is copyright. Apart from those uses which may be permitted under the Copyright Act 1968 as amended, no part may be reproduced by any process without written permission from the publisher. ISSN 1443–6698 ISBN 0 7315 3636 3 Michele Ford is a doctoral candidate at the University of Wollongong. Her research is focused on the role of non-government organisations as outside intellectuals in the Indonesian labour movement. Her earlier research analysed the philosophy and practice of Industrial Relations in Suharto’s Indonesia, and includes publications on Indonesian corporatism and Indonesian industrial relations under President Habibie. Abbreviations ACILS American Centre for International Labour Solidarity DPR Dewan Perwakilan Rakyat FAS Forum Adil Sejahtera (The Forum for Justice and Prosperity) FES Friedrich Ebert Stiftung FSP–BUMN Federasi Serikat Pekerja BUMN (The Federation of State Enterprise Workers’ Unions—BUMN) FNPBI Front Nasional Perjuangan Buruh Indonesia FSPSI Federasi Serikat Pekerja Seluruh Indonesia ICFTU International Confederation of Free Trade Unions ILO International Labour Organisation IMF International Monetary Fund KPHP Komisi Pembaharuan Hukum Perburuhan NGO non-governmental organisation SBSI Serikat Buruh Sejahtera Indonesia SPTP Serikat Pekerja Tingkat Perusahaan (Enterprise Unions) TVRI Televisi Republik Indonesia (Indonesian State Television) Labour and Management in Development Journal, Volume 1, Number 3 2 © Asia Pacific Press 2000 Research note: Indonesian trade union developments since the fall of Suharto Michele Ford There have been significant developments first of these was the transitional in Indonesian trade unionism since the fall government’s decision to proceed with the of Suharto on May 21 1998. Despite implementation of the 1997 Manpower Department of Manpower1 figures Law (Law No.25/1997), which was a estimating rises in total unemployment significant force for continuity in the between 1996 and 1998 of over eighteen industrial relations system during the million (Kompas, 29 September 1998) and Habibie interregnum. The second was ILO estimates of 1 333 345 dismissals in the President Habibie’s decision to ratify and industrial sector in 1998 alone (Kompas, 21 implement ILO Convention No.87 on the September 1998), the number of unions Freedom of Association and Protection of which registered with the Department the Right to Organise. In ratifying during the Habibie interregnum is quite Convention No.87 on 5 June 1998, Habibie impressive. The implications of the massive effectively abandoned the Suharto regime’s increase in formal labour activism are, rhetorical and policy commitments to a de however, a more complex matter. The facto single vehicle of labour transitional government’s departure from ‘representation’. It was this latter the effectively single-union model of the late development which—despite the absence Suharto period is a major policy change, of significant change at the systemic level— but this has not been accompanied by other allowed informal workers’ groups and desperately-needed changes in the formal former unions—which had been forcibly structures of Indonesia’s tripartite industrial subsumed into the single, state-controlled relations system. This research note describes union (and later, pseudo-federation), the the findings of fieldwork carried out in Federasi Serikat Pekerja Seluruh Indonesia Indonesia in February–April 1999, (FSPSI), in the late Suharto era—to seek supplemented by ongoing monitoring of registration with the Department of trade union developments via the Manpower. Indonesian press and contacts in non- governmental organisations (NGOs). It The drafting of Manpower Law No.25/ concentrates on documenting developments 1997 was an attempt to comprehensively in the legal framework of Indonesian labour update Indonesia’s labour legislation. The relations and describing changing patterns law is intended to replace six ordinances of unionisation in both the private blue-collar and eight laws presently officially in force and white-collar sectors and the public sector in Indonesia (Amiruddin and Masduki in an attempt to tease out the implications 1997:1). It covers labour force issues in both of these developments for the future of the formal and informal sectors as well as Indonesian labour relations. defining the operation of the industrial relations system (Department of Manpower 1997). The draft version of this law was a Legal context focus of extensive protest before Suharto’s Two major legislative initiatives influenced resignation. Protests were led by a group the form and substance of trade unionism of non-governmental organisations whose in the immediate post-Suharto period. The interests ranged from women’s issues to Labour and Management in Development Journal, Volume 1, Number 3 3 © Asia Pacific Press 2000 Research note: Indonesian trade union developments since the fall of Suharto Michele Ford legal aid—namely Yayasan Lembaga notice of intention to strike (signed by union Bantuan Hukum Indonesia, Elsam, leaders) be provided to employers and Akatiga, Lembaga Bantuan Hukum APIK, government agencies (Asmoel et al. Solidaritas Perempuan, Infid, Kalyanamitra, 1997:23–24). Lembaga Bantuan Hukum Bandung and The final version of the Law, approved Lembaga Bantuan Jakarta—under an on 3 October 1997 by then-President umbrella organisation called Komisi Suharto, did not address any of these major Pembaharuan Hukum Perburuhan (KPHP— concerns. Yet, despite continued criticism, the Commission for the Renewal of Labour a Habibie government working group Law) (Asmoel et al. 1997:23; Amiruddin decided against striking it from the statutes and Masduki 1997). in October 1998. In fact, the only change Critics, led by KPHP, argued that the new made was to its date of implementation, law did not preserve the nominal protections which was moved from 1 October 1998 to provided under the ordinances and laws it 1 October 2000 (TVRI National News 16 was to replace. In addition, it was seen to October 1998; Jakarta Post, 17 October 1998). legitimate unfair labour practices established Two draft supplementary laws dealing by extra-legal means during the New Order with labour unions and a revamped period (Amiruddin and Masduki 1997:2). Industrial Relations Tribunal respectively Protests were focused on Articles 29, 32, 33, (Rancangan Undang-Undang tentang 34, and 35 which dealt with trade unions; Serikat Pekerja; Rancangan Undang- Article 77 on dismissals; and Articles 83, 84 undang MPPI)2 were later produced. and 85 on the right to strike (Asmoel et al. These, and subsequent, draft laws have 1997:23). Under the articles on trade unions, been broadly consistent with the overall attempts to establish a union must be framework of Law No.25/1997, although supported by a majority of employees; they have redressed some aspects of the employees whose duties conflicted with Law—notably, limitations on union union interests could not join the union and membership—which had attracted union interests were to be limited to the criticism earlier. While the Commission for company level. Union registration continued the Renewal of Labour Law became to be contingent on government approval inactive in the early months of the and further government regulation of trade transitional government (Interviews, union matters. KPHP argued that Article 77 February 1999), NGOs interested in labour on dismissal procedures made dismissals law reform did not totally abandon easier for employers, while the Articles on attempts to monitor changes to the code. strike procedures guarantee the right to The proposed Law on Labour Unions strike in abstraction but make it difficult for (which has since been superseded) was, for workers to go on strike by limiting access to example, the subject of a panel discussion wages while on strike, forbidding secondary held on 18 November 1998 (Panel Program, strikes, and demanding that three days’ 18 November 1998). Labour and Management in Development Journal, Volume 1, Number 3 4 © Asia Pacific Press 2000 Research note: Indonesian trade union developments since the fall of Suharto Michele Ford Although it is possible that Law No.25/ those unions granted official recognition 1997 could be cancelled by Abdurrahman (Articles 4 and 5). These provisions were Wahid’s government before its reinforced in Article 23 of the draft Law on implementation date, the results of the Labour Unions discussed earlier, and have review process and the drafting of the been retained in subsequent drafts. supplementary laws suggest that Habibie’s The implications of the Department’s transitional government had no intention continued role in deciding which unions of addressing problems with the basic legal could register were immediately clear. structure of Indonesia’s industrial relations While some informants described successful system. Yet shortly after coming to power attempts to register and run small on 21 May 1998, Habibie signaled that independent unions following the restrictions on alternative labour unions ratification of the convention, others would be eased. Interestingly—in