Indonesia - Flawed fundamentals (2010)

There are four main issues that undermine and frustrate effective union representation of workers and the proper exercise of workers’ freedom of association. The first issue is the illegal and improper use of contract labour. Section 59 of the Manpower Act provides that contract labour is to be used only for work that is «temporary in nature», however many employers wilfully violate these provisions as a way of reducing labour costs and avoiding dialogue with union organisations. The second issue is that of statutorily imposed negotiation and dispute resolution processes that are flawed and undermine the ability of unions to engage in lawful strikes. The third issue is that of government officials turning a blind eye to companies that flagrantly violate labour laws. And, fourthly, government officials are more prone to side with employers than workers in interpreting, or indeed ignoring, labour law violations.