Introduction to FNV monitoring report Indonesia 2011 (January 2012) Stronger unions for a better society

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1 Introduction to FNV monitoring report Indonesia 2011 (January 2012) Stronger unions for a better society The last couple of years are probably the most important years for the Indonesian trade union movement. After a decade of missed opportunity since the reform in 1998, in 2010 and 2011 the Indonesian trade union movement finally starts to show its muscles. Having used the opportunities arisen, particularly with the enactment of the Trade Union/Labour Union Act of 2000 providing legal basis for the development and functioning of independent trade unions, and the democratization processes in general, the trade union movement starts to position itself with the current situation and opportunity, both at the regional and national level. At the regional level we see the development of various regional trade union alliances, most notably the BBB (Bekasi Labour Move), whereby minimum wage setting becomes the main arena of the struggle. Within a situation of relatively weak union position behind the employers at the companies, the minimum wage setting becomes the place, probably the only place, for social dialogues to occur. At the national level we witness the formation of an alliance of national unions KAJS (Komite Aksi Jaminan Sosial Action Committee for Social Security Reform), established to push reforms on social security system, which would benefit the society as a whole. The successful of some regions to have higher minimum wage rates and the eventual enactment of the Social Security Provider Act of 2011 might become indicators of such important progress. The development of union alliances in the regions was forced by the practical needs of a more united union movement to seize the opportunity since the regional autonomy, while there is no national centre to function as uniting forces of the unions. The KAJS s struggle to push reforms on social security system, moreover, show some certain of paradigm shift within the trade union movement from generally market or business orientation towards the one with more social orientation. These are timely developments after long decades of state suppression and cooptation to the trade union movement under the New Order, which to some extent has prolonged its legacy even after more than a decade since democratisation. These developments might give some hopes for the future of the trade union movement and their important roles in the Indonesian society, but, nonetheless, some cautions should be aware of too in the coming years. *** The description above is a general observation. As we could see from this report, such important achievements of the Indonesian trade union movement in the last couple of years are apparently rooted from various small activities conducted by different unions from different regions and affiliations. Some of the most important actors behind the movement are actually partners of the FNV Mondiaal, i.e., FSPMI, FARKES, and FSP KEP. Despite the challenges of more efforts on coordination, the FNV Mondiaal managed to develop a unique role as a bridge to these unions by somehow linking the different unions with different issues and interests through various activities conducted by the partners. Such an approach is particularly beneficial in the current Indonesian contexts with problematic fragmentation of unions and weak national centres. 1

2 Through membership meetings supported by the FNV Mondiaal, for example, the FSPMI (Indonesian Metal Workers Union Federation) could share their members about the common issues and strategies in their programs concerning decent wages for all workers, social security for all people, and tackling precarious work (contract and outsourcing work). The FSPMI was the backbone of these struggles, both at the regional and national level. Both through various regional union alliances, such as the Buruh Bekasi Bergerak (Bekasi Labour Movement) and Forum Buruh DKI (Jakarta Labour Forum) and the KAJS (Action Committee for Social Security Reform) at the national level. Similarly with other FNV Mondiaal partners such as FARKES (PSI affiliate) and FSP KEP (ICEM affiliates), which were also involved in both the regional alliances and the KAJS. Moreover, through special education program for women workers, the involvement of women in the unions activities could be expanded. The FSPMI, for instance, could produce some women leaders such as Ms Mundiah, who was specially trained to become the advocacy official of the union; Ms Rusmiatun for the union representative in the Jakarta Wage Council dealing with the minimum wage determination; and Ms Eka and Ms Hapsari, FSPMI branch members in Bekasi, in organizing. While the FSPM (hotel and tourism sector union), an affiliate to the IUF, through the Women s Committee could structurally develop women s participation in the union, both within the structure of the organisation and social obligation of the union such as collective bargaining. It has resulted in several achievements such as more women friendly collective labour agreements as well as more unity between men and women unionists. On the other hand, the Aliansi Jurnalis Independen (AJI, Independent Journalists Alliance), an affiliate of the IFJ (International Federation of Journalists), in an effort to resolve the problem of the reluctance of journalists to consider themselves as employees apart from professionals, developed the trade union wing called Federasi Serikat Pekerja Media Independent (Independent Media Workers Union Federation). By focusing the approach on the issues of decent wages for journalists it managed to gain more supports from journalists as well as media workers in general. With such program, the AJI believed that journalists would develop further understanding and sensitivity about labour issues, as later on would reflect the way they cover stories about labour problems. Many of the AJI members are also covering news related to the struggle for better wages and social security reforms, giving the more objective and sensitive coverage. *** As any big changes in any episodes in history there are always those who were against such progress. Many of them were coming from within the trade union movement itself. The regional union alliances and more active participation of the grassroots unions have to face the national organizations structures that do not like such progress as it would challenge their comfort zone and position. The KAJS, apart from facing the unwillingness of the government to implement reforms, it also has to struggle against some unions efforts to block the reforms for their own vested interests. Based on the description above, it is apparent that the FSPMI (Indonesian Metal Workers Union Federation) played the most important role in almost all level of the movement, while others seem to just follow the issues set or simply unable to catch the dynamics of the FSPMI. This is an advantage 2

3 as well as a liability of the FSPMI and the movement in general. It is an advantage could lead as the locomotive of the changes with more measured movement and progress, however, it is also a liability as with such big changes expected to happen it would certainly not be enough with only one union committed to that, and, thus, more supports and commitment from others are unavoidable. The involvement and leadership of many FSPMI activists in the very front line of labour movement in Indonesia today has also cost them some expenses. As the initiator and driving force behind the trade union alliances (regional alliances and the KAJS), the FSPMI was forced to drain its resources, both financial and human due to massive mobilization by the organizations; raising criticisms from some members to the national leadership. Although this criticism was eventually paid up with the enactment of the new act, which was indeed an important step towards the implementation of social security for all, it showed the potential problems faced by the FSPMI from within. Moreover, the militancy and consistency of the FSPMI to struggle at each level have also frightened many interest groups, particularly the business. FSPMI has now been regarded as a real threat by employers, particularly those from the Japanese multinational corporations in electronic and automotive industries; and its President, Said Iqbal, has been called monster due to his consistency and strong commitment to the struggle. Many of the FSPMI members are coming from this sector. Indeed, there has been some rumour about the mobilization of Japanese MNCs in Indonesia to encourage the split of some plant level unions from the FSPMI and to develop a new federation, starting with the leaving of one plant level union at the Panasonic Group, one of the core unions of the FSPMI since its establishment in This is indeed a hard work, especially with practically no support from the national centres on such an important struggle. Indeed two out of four national centres (KSBSI and KSPSI Kali Bata faction) openly opposed the reforms partly because their presidents have developed vested as commissioners of the Jamsostek (state owned company dealing with social security for formal private sector workers), while the other two (KSPI and KSPSI Pasar Minggu) seemed ambiguous and tended to merely follow the stream with no clear position on the issues. *** While the weakened government since the reform in 1998 seemed to be ambiguous towards labour issues, we could see the growing assertiveness of employers organizations to challenge the efforts of the trade union movement to push reforms for the benefit of their members and society as a whole. The efforts to block the social security reforms by the Apindo (Indonesian Employers Association) in cooperation with several unions, such as the SPN (ITGLWF affiliate) and several other smaller unions, by campaigning against it with full coverage of media, and the lawsuit filed by the Apindo against the minimum wage set in several regions (Bekasi, West Java province and Tangerang, Banten province) through the Administrative Court, are some examples of this desperate efforts of the business to challenge the growing influence of the trade union movement in the social and political spheres. 3

4 This would require further efforts by the unions to maintain some small victories they have achieved. This has to be done at the national as well as grassroot levels. The big chance of Mr Said Iqbal, President of the FSPMI and General Secretary of the KAJS, to lead the KSPI in the next congress might give some hopes as he could be expected would bring similar strategies applied with the FSPMI and KAJS to this national centre. Similarly, possible changes in the structure of the KSPSI with growing younger generations of activists involvement in the structures starting from Bekasi; as well as the more involvement of the regional union alliances with regional issues (such as minimum wages) as well as national issues (social security reforms) might enhance the chance of the development of a more united and strong trade union movement in the country. In other words, reforms needed not only to change the government or the employers behaviour, but also to the internal trade union movement itself. One major problem with the Indonesian unions is that their tendency to become autistic, to use the term from one worker from Bekasi, whereby they tend to focus mainly on their members with lack of interests let alone attention towards the society. They might have done a lot inward but very lack contributions outward. Thus more education about this to mainstream the social function of unions is beneficial. On this regard, the FNV Mondiaal might play a role to encourage its partners to also be more active in other social issues, such as social security and welfare for all people, apart from traditional unions issues. Supports on the activities such as members meetings and empowerment of women workers, as well as more joint activities among unions alliances and the national structures of the unions and multiunion initiatives such as the regional unions alliances and the KAJS, would be beneficial for the future. If the trade union movement could maintain this position a bit longer to institutionalize the unions participation in society, it is expected in the next few years we would see even further development of the trade unions in the country for a better society in Indonesia. Jakarta, 31 January

5 Monitoring Report - FNV Mondiaal Indicators of Decent Work, Trade Union Strengthening and sustainability Report 2011 Country: Indonesia Date: 2011 This report should be filled in from a country perspective; only those DW objectives will be addressed that are indicated in the country grid (see annex). Names of the FNV Partner organizations active in country (please include names of GUF affiliates involved as well) over the report year. Labour NGO s: Central: Trade union (mention also GUF to which affiliated): Membership based organizations : - - FSPMI (IMF) - - AJI (IFJ) Kahutindo, FKUI, Hukatan (BWI) FSBNI, FSPM (IUF) ICEM affiliates: 1. Indonesian Pulp and Paper Union Workers Federation, 2. Indonesia Federasi Serikat Pekerja Kimia, Energy, Partambangan, Minyak, Gas Bumi Dan Umum (FSP KEP) 3. Indonesian Federation of Pharmaceutical and Hospital Unions (FSP FARKES 4. Indonesian Federation of Cement Unions (FSP ISI) 5. Indonesian Federation of Petroleum and Energy Unions (FPE SBSI) 6. Indonesian Prosperity Unions of Chemical (KIKES SBSI Farkes Reformasi, SP PLN, SP AP1, SP PDAM (PSI) KPI, IKAGI, SP JICT, SPKA, STDA SBSI (ITF) SPN (ITGLWF) Other (network, university, NGO): Fair Play Alliance 5

6 Examples of effects Decent work Output If any, describe at least 3 examples of significant actions by partner organizations as a result from projects that have been supported by FNV over the past year? Please use the format below and indicate clearly under which DW-objective you classify each example. (For orientation see annex for country grid and description of the DW objectives) Trade union action/actions of partner organisations Example 1 Aliansi Jurnalis Independen (AJI Independent Journalist Independent): Journalists as workers fight for better wages, freedom of association and freedom of the press DW objective DW1 Fundamental rights at work (Freedom of Association & labour law enforcement ) DW2 right to organise and collective bargaining Name of partner organisation Aliansi Jurnalis Independen (AJI Independent Journalists Association), and the Federasi Serikat Pekerja Media Independent (FSPMI Independent Media Trade Union Federation), a trade union wing of the AJI Sector Type of action: Media In year 2006 till 2011, the AJI has conducted market survey to find decent wages for journalist, as an alternative way to find the nominal for decent wages for journalists. It was also useful to counter the mainstream false assumption about the relative better condition for journalists in Indonesia compared to other workers in other sector. The survey showed the practical indecent condition of journalists while at the same time provided a benchmark of a decent wage for journalists that could be referred during collective bargaining at the company level. In October 2011, the AJI held a road show in 10 cities around Indonesia to campaign the survey result on decent wages for journalists. Apart from promoting the nominal of the wages for journalists, the road show was also used to spread the needs of having a trade union for journalists and media workers in general. They based the campaign on the fact that out of around 1078 printed media, 2000 radio stations, 78 TV stations, and hundreds of online media in Indonesia, there were only 31 trade unions. Having used the decent wages as the core of campaign in order to gain more support and members to the union, the AJI called this as soft organising. This was an alternative way after learning from the lessons from the previous effort to organise journalists and media workers to join unions often ended with dismissal to the initiators or even the closing of the media itself, thus a more indirect efforts were considered beneficial. Strategy of involving media owners and management added more values as any possible problems could be resolved as soon as possible in the early stage. 6

7 As result of the campaign several media workers were interested in joining the FSPMI (Independent Media Trade Union Federation) which was the trade union wing of the AJI, among others were in several regional media such as: Pontianak Pos, Surakarta Pos, Jogja Daily, and including the national media giant such as Tempo magazine, with the establishment of SEPAKAT (Tempo Correspondent Union). The SEPAKAT consisted of journalists from various regions who worked as correspondents for Tempo magazine. As correspondents they could not join the existing union at Tempo which consisted of full-time journalists of Tempo, while they actually had the same employer (Tempo). After forming the SEPAKAT they could directly negotiate with the management on the issues of working condition. Until the end of 2011, the SEPAKAT members were 48 persons, or 75 percent of all Tempo correspondents (64 persons) around Indonesia. Their target of actions were around welfare for journalists such as better honorarium, health care and work safety, as well as the rejection of outsourcing works, which was dominating. - Training on organising The FNV-AJI program with the FSPMI (media union) conducted training on organising in several regions in Indonesia, such as Malang, Medan, Yogyakarta, Pontianak, to raise awareness among journalists about the important of unions. - Road show Survey result on decent wage was socialised through the road show in 10 cities in Indonesia simultaneously. - Book publication In October 2011, in 16 cities, the AJI launched a book titled Decent Wages for Journalists, which was the compilation of the survey result conducted by AJI, which was also a media campaign to encourage journalists to join unions. - Negotiation After the SEPAKAT was formed, the correspondents could negotiate directly with the Tempo management on their behalf on various issues such as healthcare, work accidence, old age benefit, and wages. With this the SEPAKAT managed to raise the value of the honorarium they could get from any news they submitted. It was agreed, correspondents receive the existing minimum wage in the regions where they work. The agreement between the SEPAKAT and Tempo management was later on also used as reference for Tempo management in their CBA negotiation with the existing union in Tempo. When was the action carried out Month: January October Year: 2011 Who else participated in the action Number of people involved (distinguish between men and women) AJI Indonesia, FSP Media Independen, Tempo Union, Jogjakarta Daily Union Total: all AJI and FSPMI activists : 1813 members Men: 5 at the national head office Women: 3 at the national head office 7

8 Describe the beneficiaries (in terms of gender, ethnic origin, age, etc.) What makes you or the FNV partners say the action has been successful? Can you describe how FNV has supported the action Additional comments: Hundreds of media workers, which around 30 percent of them were women in various regions in 10 cities. Before this campaign, most journalists and media workers in general were lack of ability and understanding on how to negotiate with their employers let alone to join unions. Even if they managed to have collective bargaining, they do not have enough data to bargain with. With the survey, journalists and media workers in general could have a benchmark when negotiating wages with their employers by using the survey result as reference. At the same time, by negotiating they were also developing the social position of their organisations. The establishment of several unions in some media companies could become the indicators of the effectiveness of the AJI-FNV campaign. One important example was the success of the Tempo magazine correspondents to form union and to bargain collectively with the management was important as normally in other media companies correspondents were not considered employees of the media companies, while their situation which was spread out in various regions made it very difficult to bargain collectively. With the establishment of SEPAKAT, it was not only they managed to have one voice in negotiating with the management, but the management was able to discuss the terms properly with their correspondents about the terms and conditions. In the last three years, AJI has conducted various programs such as trainings, workshops, seminars, discussions, as well as scholarship, which all were 135 items. Apart from these, AJI has also conducted research, survey and publication of books, papers, as well as campaigns and actions in relation with press issues. The result was that in the last three years there has been increasing in membership of around 80 percent, from 1,020 (2008) to 1,813 (2011). FNV through AJI national headquarter in Jakarta has supported some of these activities, particularly the capacity building trainings on organising media workers and union aimed at accelerating and widening the awareness of media workers to join organise. Moreover, FNV supported the decent wage for journalists campaign, which also has become an effective instrument to campaign the needs of union for media workers through the FSPMI. According the AJI leaders, there were three major issues carried by the organisation which became the platform for the AJI work, i.e., welfare for journalists, professionalism and press freedom. The issue of welfare was closely connected with decent wages and social security which would support professionalism for journalists. Professionalism was encouraged by particularly anti-amplop (anti-bribery) for journalists and press freedom. It was believed that the all three could be effective if the union awareness among media workers had also developed. It was based on this argument that AJI established the union division within its national structure, which later on manifested in the form of FSPMI. While AJI consisted of 8

9 journalists as professional based on individual membership, the FSPMI was a union which members were the plant level unions in various media companies consisting of all workers working in media companies (e.g. Journalists, security guards, printing division, etc). The main task of the FSPMI was to support AJI s work to accelerate and widen the awareness as well as willingness among media workers about union. It was evident that the existence of FSPMI had also strengthening of the bargaining position of media workers in general. Reactions of government authorities (positive or negative) DW objective DW1 Fundamental rights at work (FOA & labour law enforcement ) DW2 Right to organise and collective bargaining Name of the government authorities involved National - Minister of Manpower and Local Regional Manpower Offices Transmigration, Mr. Muhaimin iskandar Qualify the effects as: Positive: partly Negative: mostly Indicate the type of effects: - - approval of new labour legislation - implementation of approved labour legislation - - changes in existing labour legislation - - other: Mr Muhaimin Iskandar, the Minister of Manpower, supported the decent wage campaign by AJI by providing a special outlet in the job fair organised by his Ministry in Bandung, West Java, in AJI has also maintained good relation with the Minister as shown in some meeting between the two concerning particular cases, such as the hearing between AJI, FSPMI and the Minister about the Indosiar TV union member of FSPMI case (dismissal of several union leaders) Describe the major issues that are addressed through the acts of government Name the principles of the policies that are formulated No. of people who will benefit from or are affected by this Despite the encouraging response of the Minister of Manpower, in general the Indonesian government was still lack of sensitivity of unions and workers issues, in the media sector or else. Union busting was still common with impunity, and unions and workers were still in inferior position. AJI also noted that in 2011, anti-union behaviour was still marking the media sector, along with other issues such as casualisation of work and precarious condition of journalists, low wages despite the high risks of the work, as well as outsourcing. - Total: all media workers in Indonesia around : Men: around 70 % of workers media Women: around 30 % of workers media 9

10 Describe if and how women will particularly benefit from this or will be affected Describe if and how persons in the informal sector will particularly benefit from this or will be affected Can you specifically describe how the pressure exercised through activities by FNV partners has influenced the behaviour of the authorities in this regard Additional comments: workers As part of the wage survey, AJI also paid special attention on the special needs of women journalists. While it also conducted a research on the working condition of women journalists and mapping of violence faced by women journalists in their daily work. - The existence of media workers unions in several media companies belonged to the FSPMI was directly benefited from the FNV support to AJI. Their existence moreover had made the changing behaviour of the management/ companies that became more conducive for social dialogue and negotiation between the parties. Now media workers had collective vehicle to negotiate, while before most had to face this individually. The demand for better wages and working condition was considered appropriate by AJI to tackle the problem of bribery among media workers with the costs of the integrity of the press in general. AJI also noted that the monopolisation of media ownership by a few had become problematic as it would influence the independence of the media editors; while the coalition of media owners with particular political parties could become threats to the integrity of the press. All these had to be tackled starting from the most feasible one, raising awareness among journalists and media workers about their rights. Reactions of companies/employers DW objective Name of company/ employer What are the measures taken by the companies? Describe: DW1 Fundamental rights at work (FOA & labour law enforcement ) DW2 Right to organise and collective bargaining PT Tempo Inti Media Tbk., Pontianak Pos, Selopos, Harian Jogja They were willing to negotiate collectively with the union, which later was manifested in the collective bargaining agreement concluded. Qualify the effect as: Positive: yes Negative: - Type of company: - Multinational National Yes PT. TEMPO Inti Media Tbk Local Yes Pontianak Post, Selopos, dan Harian Jogja. 10

11 Sector Number of fixed employees that benefit Number of outsourced employees (do not fall under CBA) Media % women employees 30 % What are the factors that have influenced the company into taking these measures? Can you specifically describe the influence of the pressure exercised by the FNV partners in this regard Additional comments: - Around 700 employees Around 250 The solidity of the unions and strong support from AJI and particularly FSPMI through trainings and direct advocacy. AJI and FSPMI directly provide trainings and education to the journalists and media workers about how to build strong unions. Example 2 Federasi Serikat Pekerja Metal Indonesia (FSPMI) struggle to reduce labour contracts and outsourcing (precarious work) DW objective Name of partner organisation Sector Type of action: Research on outsourcing system DW2 right to organise and collective bargaining DW6 - Employment (supply, quality and labour relations) Federasi Serikat Pekerja Metal Indonesia (FSPMI, Indonesian Metal Workers Federation) Metal & General Sector Outsourcing system in Indonesia in recent years have become widespread and raised concerns among workers and unions. The system is increasingly worsened the condition of the workers' welfare, as it puts workers in weak position and precarious. It happens because they are normally not unionised, thus there is no organisations fighting for their rights. On the other hand, the existence of outsourcing and contract system has further challenged the existence of unions themselves. Based on this background the FSPMI put the issue of outsourcing as one of the top priority union agenda that should be fought. The struggle to abolish outsourcing system started in 2009, along with the international campaign led by the IMF. FSPMI campaign to reject outsourcing have to face challenges from various parties, not only from the employers, but also from the community which consider FSPMI effort could hinder the people to get jobs. Such issue was disseminated by community leaders and even religious institutions, which apparently also served as distributors of outsourced workers. To fully understand the negative effects of outsourcing system, and at the same time to strengthen the advocacy against outsourcing system, the FSPMI conducted research on the impact of outsourcing system in particularly its members in the electronic sector. Pasuruan (East Java) was chosen as the location of the research because of the uniqueness of the case that occurred there. In Pasuruan the struggle against outsourcing was not only rejected by employers but also from surrounding communities, as many community leaders and religious 11

12 Outsourcing labour data entry Instruction letter to fight against outsourcing system Publication campaign Lobbying Lawsuit to the court Rally in industrial area Demonstration institutions actually those behind such practices. In order not to miss-target and to develop effective advocacy, especially within the FSPMI internally, the FSPMI started by collecting data on any companies where they have members which imposing outsourcing system. The struggle reject outsourcing starts from existing companies where FSPMI has members so that negotiations can occur. As part of the action to fight against outsourcing, the FSPMI headquarter issued an instruction letter to all of its ranks and union officials, at the central, branch, region, and the plant level to fight against outsourcing. This instruction letter contained an appeal to the whole range of FSPMI union officials to negotiate with the management to remove or at least to reduce the use of outsourcing system in the company. If these negotiations failed, FSPMI emphatically said it would mobilize solidarity actions and asked permission to strike if the company remains stubborn system continued. The idea was to put the agreement in the collective bargaining agreement. The campaign with leaflet, flyers, and newspapers ( Koran Perdjoeangan ), on the issue of outsourcing. FSPMI also sent press releases to the mainstream media, so campaign to resist outsourcing is reported also in the mass media. FSPMI in all level: centre, regional, branch, and factory, had the obligation to negotiate within its jurisdiction. The centre would lobby the Minister of Manpower, employers association, parliament, Vice President. While the regional branch would lobby the Regent/Mayor, regional parliament at the provincial level, and the plant level union would negotiate with the management. The results of the lobby: 1. Circulars and recommendations from Minister and Commission IX national parliament. 2. Memorandum from General Director of Labour Inspection of the Ministry of Manpower. 3. Supervision note of the Ministry of Manpower. 4. Circulars from regent/mayor, recommendations of the regional parliament (DPRD), and revocation of the outsourcing company licenses by the Regent/Mayor. 5. Legislative in the province level calling Regent/Mayor and the Manpower Office. 6. Companies commitment not to use outsourcing. FSPMI also filed a lawsuit to the Industrial Relations Court the company that violate regulations on outsourcing under the Manpower Act. The rally was held in industrial area by motorcycle and distributing leaflets to workers in the companies surrounding Mass action was another tool to raise the issue: 1. Strike for a company who still use outsourcing systems. 2. Mass Demonstration at the Ministry of Manpower as well as Manpower Office at the provincial level. 12

13 3. Demonstration in front of the Presidential palace, House of Parliament, Ministry of Manpower, Japanese Embassy, Korean embassy, and Singapore Embassy. When was the action carried out Month: January December Year: Who else participated in the action Number of people involved (distinguish between men and women) Describe the beneficiaries (in terms of gender, ethnic origin, age, etc.) What makes you or the FNV partners say the action has been successful? Can you describe how FNV has supported the action National headquarter (DPP/PP), Regional branch (KC/PC/DPW), and plant level; FSPMI counterpart in the IMF, i.e., Lomenik union Total: all official and members Men: 15 head office Women: 4 head office All workers in Indonesia especially those with outsourcing status. As an outcome of the campaign against outsourcing, the issue has become national issue not only for workers who are members of FSPMI but also other workers outside, and there is synergy between the central organizations and the branch. Despite the difficulties faced, there are some success stories from this campaign as several companies (e.g. Epson and Suzuki) have agreed to the demands and came to an agreement to limit outsourcing practices there. Moreover, in several regions the heads of the regions published circulars to ban the use of illegal outsourcing system (e.g. Medan, Karawang and Bekasi). FNV s main support to FSPMI is for the membership meetings. Such activities are aimed at strengthening and improving the quality of members on basic understanding about trade unions and labour laws. Through membership meeting members are given understanding of outsourcing practices and how they have cost workers lives. Leading to consolidation and coordination of the FSPMI members to jointly struggle to abolish outsourcing practices. Additional comments: On the issue outsourcing the FSPMI has also support from other agencies such as the Friedrich Ebert Foundation (FES). The support from the FES is used for research projects, while the support of FNV is mainly used for education to the members about the outsourcing and how to tackle it. By doing this the FSPMI has managed to effectively use the supports it gained to more productive activities, while avoiding overlapping or repetition of activities. Reactions of government authorities (positive or negative) DW objective DW1 Fundamental rights at work (FOA & labour law enforcement ) DW2 Right to organise and collective bargaining Name of the government authorities involved National - Minister of Manpower and Transmigration MuhaiminI Iskandar Local Manpower Agency, the Police, the District Court. 13

14 Qualify the effects as: Positive: mostly Negative: partly Indicate the type of effects: -approval of new labour legislation Several local governments issued decrees (Governor or Regent/Mayor) that contain the restrictions of the use of outsourcing and labour conditions for the outsourcing. Such regulations provide basis for government intervention on the violation concerning outsourcing work, apart from those already stipulated in the Manpower Act No. 13/ implementation of approved labour legislation -changes in existing labour legislation - -other: - Describe the major issues that are addressed through the acts of government Name the principles of the policies that are formulated No. of people who will benefit from or are affected by this The Government has not yet taken the initiative to reduce outsourcing practices and lack of good attention to labour conditions. The regional regulations were issued by the Government mainly due to pressures and demands from the workers. Restrictions of the use of outsourcing and labour conditions for the outsourced workers which should not be different from other workers. Total: 130,608 members Men: 79,730 Women: 33,397 Describe if and how women will particularly benefit from this or will be affected Describe if and how persons in the informal sector will particularly benefit from this or will be affected Can you specifically describe how the pressure exercised through activities by FNV partners has influenced the behaviour of the authorities in this regard Additional comments: - Women Workers receive considerable benefit from this because a majority of outsourced workers are mostly women. For example in Astra Aekobono factory, Pulogadung, Jakarta, 80% of outsourcing workers are women. Pressure and a massive campaign undertaken by the FSPMI made the government think that the public monitor their performance. Support regarding the prohibition of the use of outsourcing has been given by the Government although it was not entirely from their initiatives. In addition, the issue of outsourcing become familiar to them. Reactions of companies/employers DW objective Name of company/ employer What are the measures taken by the companies? Describe: DW1 Fundamental rights at work (FOA & labour law enforcement ) DW2 Right to organise and collective bargaining Companies in several parts of Indonesia (e.g. Suzuki and EPSON) Willingness to have negotiation with the union and agreement not to impose outsourced labour, reduce, and abide by the rules relating to the application of labour outsourcing 14

15 Qualify the effect as: Positive: yes Negative: - Type of company: Yes Multinational National Yes Local Sector Metal & General Sector Number of fixed employees that benefit 130,608 employees Number of outsourced employees that benefit % women employees 30% What are the factors that have influenced the company into taking these measures? Can you specifically describe the influence of the pressure exercised by the FNV partners in this regard Additional comments: - 17,481 employees The main factor was the strong and effective trade union. Negotiations towards the company and the local government is conducted by FSPMI, campaigns, as well as action-mass is a form of direct action of pressure and the struggle carried out by the FSPMI over the rejection of the working system of outsourcing. Example 3 IUF and FSPM women s committee struggle for equality DW objective DW3 No Discrimination DW2 Right to organise and collective bargaining Name of partner organisation IUF, Federasi Serikat Pekerja Mandiri (FSPM, Independen Trade Union Federation), Women s Committee of the FSPM Sector Type of action: Hotel and tourism Women s committee was a division in the structure of FSPM, which was very active in mainstreaming women s rights and participation within the FSPM nationwide. This was done by influencing the collective bargaining agreement negotiation and formulation. Some of the results, as adopted in several collective bargaining agreements of the FSPM members, were: - Health care for women workers which also covered husbands and two children (normally only men workers had this as stipulated by law). - Protection from sexual harassment by inserting definition and sanction for such behaviour. - Picking up facility from and to home for women workers who worked at night shift. - Obligation of the company to provide replacement of leg stocking for women workers, which could reduce the women workers expenditure for at 15

16 Gathering supports Research / survey Negotiation When was the action carried out Who else participated in the action least Rp 2 million a year. - The success story was found at Hotel Grand Melia, Jakarta, which inspired other hotels in other regions such as Bali and Yogyakarta. Through discussion and education the women s committee managed to raise awareness of the women workers of the union and gathering support for the movement. Before the negotiation between the union and the management was held, the women s committee initiated the internal survey about the special needs of women members and other issues related, these would then be brought to the preparation meeting of the union to be raised during the negotiation with the management. Women s committee was actively involved in the negotiation with the management; all members of the women s committee that sit on the plant level structure had to join the negotiation team and raised the women issues which normally being neglected. Month Year January 2011 December FSPM, Women s Committee, IUF. Number of people involved (distinguish between men and women) Describe the beneficiaries (in terms of gender, ethnic origin, age, etc.) What makes you or the FNV partners say the action has been successful? Can you describe how FNV has supported the action Additional comments: Total workers at Hotel Grand Melia, Jakarta Men workers Women workers Women workers of the FSPM at the national as well as plant levels. While directly benefitting the women workers at Grand Melia Hotel, Jakarta, the successful efforts by the women s committee also inspired other women workers members of the FSPM in other hotels and other regions, such as Bali dan Yogjakarta. The success also encouraged other women workers to be more active in the union, while also made men workers to be more sensitive to women workers needs. Women s committee was a direct result of the training for women in the FSPM which was directly supported by the FNV. All this time women workers participation in the unions was very limited, thus the collective bargaining agreement concluded generally not so sensitive to the needs of women as the negotiators were normally men. With the efforts of women s committee more women were able to sit on the union structures and do their duties to raise women s interests in the collective negotiation process and indeed influence the formulation of the agreements concluded. 16

17 Reactions of government authorities (positive or negative) DW objective DW3 No Discrimination DW2 Right to organise and collective bargaining Name of the government authorities involved National - Local Dinas Tenaga Kerja, DPRD. Qualify the effects as: Positive: no Negative: yes Indicate the type of effects: - - approval of new labour legislation - implementation of approved labour legislation - - changes in existing labour legislation - - other: - Describe the major issues that are addressed through the acts of government Name the principles of the policies that are formulated No. of people who will benefit from or are affected by this Describe if and how women will particularly benefit from this or will be affected Describe if and how persons in the informal sector will particularly benefit from this or will be affected Can you specifically describe how the pressure exercised through activities by FNV partners has influenced the behaviour of the authorities in this regard Additional comments: - The government (particularly the Manpower Offices in the regions supposed to deal with the normative issues) have been criticised for being invalid due to lack of staffs and budget of the inspection division as many normative rights of workers in general were violated without punishment let alone women workers rights. - Total 420 workers at Hotel Grand Melia, Jakarta Men 290 workers Women 130 workers Women workers were directly benefitted by the success of the activity, by having the collective bargaining agreement provisions for the company to provide picking up bus for women workers working at night as well as leg stocking which directly reduced the expenditures of the workers. - - Reactions of companies/employers DW objective Name of company/ employer DW3 No Discrimination DW2 right to organise and collective bargaining Management Hotel Grand Melia Jakarta 17

18 What are the measures taken by the companies? Describe: Willing to negotiate and agree on the demands of women workers. Qualify the effect as: Positive: yes Negative: no Type of company: Multinational Yes National - Local - Sector Hotel Number of fixed employees that 420 workers benefit Number of outsourced employees that benefit % women employees 35 % What are the factors that have influenced the company into taking these measures? Can you specifically describe the influence of the pressure exercised by the FNV partners in this regard Additional comments: - 80 workers The solidity of the unions and the successful efforts by the women s committee to influence the structures of the unions about the issues. These were added by data provided by the women members of the unions through women s committee about their needs and condition. In some hotels, the management had shown some sensitivities and willingness to agree on the provisions concerning protection to women workers in the collective bargaining agreement. This particularly was achieved through the cooperation between men and women workers during the collective bargaining to formulate the CBA. DW8: Social Dialogue Output Active involvement of partner organizations in Social Dialogue over the past year Name of partner FSPMI, with an alliance called the Action Committee for Social Security (KAJS, consisted of tens of unions and civil society organisations). Name of social dialogue structure partner is involved in Social security action committee Jakarta Tripartite Regional Wage Determination / increase Negotiate increase and 18 What is the reason for the partner to take part in this To urge the Government and the parliament to make law governing the Social Security provider (BPJS) immediately, so that all the people in Indonesia had passed to get comprehensive social security. With success: new law was adopted. Contribution of partner within the social dialogue structure over the past year To provide input related to the contents of the draft law, do lobby members of Parliament, and the campaign to the public.

19 Labour Forum (DKI) and Bekasi Labour Forum (BBB) active participation of FSPMI, SPN Councils of Jakarta and Bekasi of regional minimum wage, which for many workers is actual wage. work jointly by increasing pressure through conduct of independent wage surveys, mobilisation of workers and negotiation. ICEM affiliates Social Dialogue Conference on International standards and at company level, multinationals, a.o: Goodyear, Cussons (UK), Bridgestone Tyre, Lafarge, AkzoNobel, Freeport Indonesia, PT Japan Medical Supply, Pindo Deli, Asahimas Improve CBA, include rights of agency / contract workers in company agreements and/or make them permanent, increase wage, improve implementation of law on outsourcing. Improve CBA rights, Freedom of Association and Right to information and consultation. Represent members interests at company level, inform and negotiate. DW 8 Social Dialogue Outcome Can you give one or more examples of social dialogue (that are both effective and highly regarded by unions) with governments and/or companies/employers (per type) involving FNV partner organizations, over the past year? Example 1 Successful campaign Action Committee for Social Security realises new law Name of structure for dialogue Action Committee for Social Security (KAJS) Actors involved Trade Unions, university, civil society, NGO Division of actors in percentages Trade unions: 70% ; university: 10% ; Civil society: 5% ; NGO: 15% Agreed objective(s) of the social dialogue Social security universal coverage with no discrimination and no limitation for all citizens. Themes discussed Social security reform: health care for all, pension for formal workers, and public legal entity for social security providers Year in which social dialogue was started Describe how the social dialogue is organised Frequency of meeting Products and results of the dialogue this year First by drafting the inputs from KAJS concerning the bill, in accordance with the mandate of the National Social Security System Act No. 40/2004. The draft was then used as material for KAJS in the hearing with the parliament members, the Government, political parties. Around 50 meetings The enactment of the Social Security Provider Act No. 24/2011 as expected by the KAJS. 19

20 Problems Additional comments: The process of implementation still need to escort because it is still a lot of rules derivative of the BPJS act should be completed in order for people of Indonesia can be immediately fulfilled the right to social security thorough. Social Dialogue became one of the first phase of the struggle of FSPMI and required in the struggle of SPMI. Action is a last resort when an agreement is not never found or negotiations have failed (For additional tables on reactions government authorities copy/paste the above table) Reactions of government authorities (positive or negative) DW objective DW7 Social Protection DW8 Social Dialogue Name of the government authorities involved National: Ministry of Manpower and Transmigration, Ministry of Finance, Ministry of Health, Bappenas, Ministry of State Owned Enterprises, Ministry of Social, Ministry of Utilization of State Apparatus and Bureaucracy Reform, and Ministry of Law and human rights. Local : - The Parliament Qualify the effects as: Positive: mostly Negative: partly Indicate the type of effects: After two years of struggle, finally the Social Security -approval of new labour legislation Provider (BPJS) bill was passed into law Number 24/ implementation of approved labour legislation -changes in existing labour legislation - -other: The establishment of the Government Team to monitor the process of transformation of the existing social security providers to the new ones Describe the major issues that are addressed through the acts of government Name the principles of the policies that are formulated The BPJS Act No. 24/2011 stipulates the transformation of the existing social security companies (owned by the state) to become public entities owned by the public, which not for profit in nature, tasked of providing social security for all citizens. The program would start from universal health care for all in 2014 and others in The establishment of two social security providers, i.e., the one dealing with universal health care and the other one with manpower No. of people who will benefit from or Total: 237 million Men: around half Women: around 20

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