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UNFAIR LABOUR PRACTICE: COMPARISON BETWEEN CASE IN INDONESIA AND INDIA

MID TERM ASSIGNMENT FOR INDUSTRIAL RELATIONS ADMINISTRATION

CYNTHIA VANESSA DJODJOBO PUBLIC RELATIONS 009200800007

I. INTRODUCTION Unfair labor practice can be defined as Legally prohibited action by an employer or trade union such as refusal to bargain in good faith. However, it is more comprehensible if we take the definition from United States National Labor Relations Board (NLRB). The definition is presented on details which include:

1.

Interfere with two or more employees acting in concert to protect rights provided for in the Act, whether or not a union exists.

2. 3.

Dominate or interfere with the formation or administration of a labor organization. Discriminate against employees for engaging in concerted or union activities or refraining from them.

4.

Discriminate against an employee for filing charges with the NLRB or taking part in any NLRB proceedings.

5.

Refuse to bargain with the union that is the lawful representative of its employees.

Unfair labor practices have been happening all around the world. That is why International Labour Organization held International Labour Conference that declared fundamental principles of rights at work specifically about freedom of Association, elimination of compulsory labour, elimination of child labour and no discrimination at work.

Although International Labour Organization through International Labour Conference has declared their fundamental principles, each country has its own regulation and approach for handling and solving unfair labour practice problem. Below, it will be discussed about the unfair labour practice in Indonesia and unfair labour practice in India and the way the government of those countries handled and resolved the problem.

II. DISCUSSION

II.I. CASE

Unfair labour practice case in Indonesia

Lestijoko, a labour who worked to record electricity meter for cooperation on 2004 was transferred from the cooperation to an outsourcing company. He also got salary decreased from 790000 rupiahs a month to 5000 a month. For that reason, he reported the outsourcing company to the ministry of manpower and social. After that case over, another case arise on 2007. Suddenly he was fired without warning letter and severance pay. He was deemed to make a mistake. He explained the contract of employment stated that an erroneous is only finable for 20000 rupiahs. He thought that he did not make a serious mistake. Because he felt that his rights were violated, he reported the case to the ministry of manpower and social in Surabaya. He lost but he requested for appeal which take six months of processing.

In Batam, the labours protested about downgrading salary in the garment company last March. Last year there was also a case about unfair treatment from the expatriate to local worker. Similar case there happened in PT.SMB Industrial where the company did not give employment contract, one of the director likes to say harass words and fired labours. To solve the company only gave employment contract but other demands are ignored.

Another case in Batam was the harassing case in PT. Drydock World Graha where the foreign supervisor teased the local worker by saying all Indonesian stupid. It drove the Indonesian workers angry and spoke out about the unfair wages and position that have been happening in the company where they got underpaid for 7000 rupiahs an hour and the managerial position is particularly provided for the expatriate.

Unfair labour practice case in India

Bata India Ltd, got into some cases with employees and labours. First, when its labour complained about agreement violation between management and Bata shop employees union Kolkata. Many employees were transferred beyond the work agreement. Moreover, the management will cut the salary and underestimate them to join the management also threat them to terminate the service. Other case happened there is the case of the termination of more than two hundred store manager. It was filed by the Union of India. Another case was about appointing contract workers instead of permanent employees. Child labours also become a phenomenon in India because it has the largest number children labor in the world. The worse thing is those children mainly work in forms of hazardous occupations. Most of those work to pay their family debts. They did it without barely questioning anything because they are lack of education. III.II. GOVERNMENT ROLES IN RESOLVING UNFAIR LABOUR PRACTICE Indonesia and India have many similarities in common about labours. In Indonesia and India, there are Labour Act which are not well applied. Many times, government recommends bipartite and mediation between the labours which usually engage labour union. They also provide judicature institution. There is slight difference between court in Indonesia and in India. However, almost 90% of labour cases won by company. Some cases even dismissed. III.III. ARGUMENTS Both of this coutries has their own acts and judicature institution to solve unfair labour practice problem but, how could the unfair labour practice keeps on happening? Its because the credibility and dependability of the governments are not well integrated in the government environment. In Indonesia, the issues are not seriously handled because there are long jurisdiction process and individual concern for individual profit. The worse thing is district autonomy that cause no direct supervision from the central labor department that weaken the desire to act according to the regulation.

Other than that, labour acts sometimes are not followed with regulation about sanction if a company or person violates the labour acts. In India, some employer just transferred the labor with problem to get rid of the problem without get any sanction. It also happened sometimes that the state labour department just disregards the complained.

COMPARISON OF FACTS ABOUT UNFAIR LABOUR PRACTICE

COUNTRY FACTS INDONESIA Labour Addressing labour report department Handling problem Judicature Institution tribunal Case winner Supreme court Mostly by employer Involved for mediation with Mediation Bipartite agreement Court Civil court Civil service arbitration Mediation Bipartite agreement Court and transmigration State Labour department INDIA

Labour court High court Supreme court

Mostly by employer Involved for mediation with possibility

Labour union to help in court possibility to help in court

IV. CONCLUSION

IV.I. RECOMMENDATION

There are some solutions that might work in both Indonesia and India in order to reduce the unfair labour practice: - For Indonesia and India, there should be reformation in person and in institution, so the labour will be able to get a fair chance to talk, complain and get protection from the government regarding to their rights. - The government in Indonesia should revise the labour acts which only have regulations but have no sanction in order to strengthen the law in Indonesia. For example, in Lestijoko case when he got fired without warning letter and severance pay. He could sue the company according to Labour Acts #.156 says When there is a lay off, the employer has the responsibility to give severance pay and or reward pay of work duration and employee rights substitute money. However, there is no sanction for the company if the severance pay is not paid. It might be revised so the company will think twice if they are unfair such as add if the labour do not get paid after 30 days, the company will get sanction in form of double the severance pay and do not allow to recruit either contract worker or permanent worker for 180 days. - For Indonesia and India The government should revise social warranty and pension according to life standard. That way, the labours and their family can have better life against poverty. - For Indonesia and India, the government should broaden the role of unions as a place to gather labours aspiration to be reported to the higher authority. - For Indonesia and India, the government should provide training and education center, so the labours especially the children labour will be able to understand their rights, what to do and what not to do.

V. REFERENCES

Guntur. Indonesia labor act UU Tenaga Kerja Indonesia. Retrieved June 4, 2011 from http://indo-laboract.blogspot.com/. Translated by Cynthia Vanessa Djodjobo

Lestijoko, Buruh yang sedang berjuang melawan ketidakadilan. Retrieved June 4, 2011 from http://www.voila.web.id/profil-tokoh/lestijoko-buruh-sedang-berjuang-melawan-ketidakadilan.aspx. Translated by Cynthia Vanessa Djodjobo

Silaban, R. Masalah aktual ketenagakerjaan dan pembangunan hukum di Indonesia. Retrieved June 4, 2011 from http://www.lfip.org/english/pdf/bali-seminar/Masalah%20aktual%20ketenagakerjaan%20-

%20rekson%20silaban.pdf. Translated by Cynthia Vanessa Djodjobo

Anshari M, Widodo S. Di balik rusuh buruh kapal Batam. Retrieved June 6, 2011 from http://monitorindonesia.com/2010/05/di-balik-rusuh-buruh-kapal-batam/. Translated by Cynthia Vanessa Djodjobo

Bata employees allege unfair labour practice. Retrieved June 4, 2011 from http://www.businessstandard.com/india/news/bata-employees-allege-unfair-labour-practices/117546/on. Cynthia Vanessa Djodjobo Translated by

Bata

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Ltd

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by

management.

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from

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Child labour in India. Retrieved June 6, 2011 from http://azadindia.org/social-issues/child-labour-inindia.html

Indian labour law. Retrieved June 6, 2011 from http://en.wikipedia.org/wiki/Indian_labour_law

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Unfair

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from

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ILO declaration on fundamental principles and rights at work. Retrieved on June 7, 2011 from http://actrav.itcilo.org/actrav-english/telearn/global/ilo/law/idec.htm

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