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The Existence of Trade Union on the Implementation of Outsourcing Worker Policy in the Rights of Labour: Case from Indonesia

Received: 25 December 2020     Accepted: 7 January 2021     Published: 1 April 2021
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Abstract

The form of deviation in the application of outsourcing policy and the system of work agreement for a certain time include: (1) the company has not classified the core and noncore business; (2) outsourcing workers and contract workers are not included in the worker's social security program, (3) outsourcing workers have no job security, career guarantees, and continuity of work; and (4) the tendency of job hire companies and employment service providers to pay wages lower than the regency minimum wage. Irregularities in the implementation of outsourcing policies led to conflicts of interest, disharmonious organizational communication, and mistrust of workers towards management. This problem triggerred demonstrations and strikes by workers and trade unions. On the other hand, supervision and guidance from the local manpower office had not been effective. Therefore, the role and existence of trade unions were necessary to fight for workers 'rights and legal certainty to protect workers' rights. The results of this study revealed the existence of trade unions through mass demonstrations nationally and to reject the outsourcing system can pressure the East Java Governor to conduct a moratorium on outsourcing and the Indonesian government to design Omnibuslaw outsourcing. On the one hand, Omnibuslaw aims to facilitate the outsourcing system and on the other hand provides a favorable compensation for workers in the form of a pension guarantee. Previous research showed that trade union advocacy on the implementation of the Law of the Republic of Indonesia No. 21 of 2000 produced a model of trade union advocacy and the role of trade unions in determining district minimum wages. This research was a downstreaming from previous research conducted at employer companies, union outsourcing companies, and labour agencies in East Java.

Published in Journal of Public Policy and Administration (Volume 5, Issue 1)
DOI 10.11648/j.jppa.20210501.14
Page(s) 24-29
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Trade Unions, Outsourching, Workers Rights

References
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[2] Bass, B. M., Avolio, B. J., Jung, D. I., & Berson, Y. (2003). Predicting unit performance by assessing transformational and transactional leadership. Journal of Applied Psychology, 88 (2), 207–218. https://doi.org/10.1037/0021-9010.88.2.207.
[3] Farooq, M. B. (2015). Qualitative telephone interviews: Strategies for success. 18th Annual Waikato Management School Student Research Conference, 1–30.
[4] Kakabadse, N., & Kakabadse, A. (2006). Journal of Management Development. In Journal of Management Development (Vol. 25, Issue 8). https://doi.org/10.1108/jmd.2006.02625haa.001.
[5] Kelliher, F. (2005). Interpretivism and the pursuit of research legitimisation: An integrated approach to single case design. Electronic Journal of Business Research Methods, 3 (2), 123–132.
[6] Prabhaputra, A. A. (2019). Sistem Outsourcing Dalam Hubungan Industrial Di Indonesia (Outsourcing System In Industrial Relation In Indonesia). 1 (1), 22–27.
[7] Rahim, R. A., Ahmad Tajuddin, M. A. bin, Abu Bakar, K. bin H., & Abdul Rahim, M. N. Bin. (2015). Migrant Labour and Issues on Outsourcing System in Malaysia. SHS Web of Conferences, 18, 01003. https://doi.org/10.1051/shsconf/20151801003.
[8] Rohayati, D., & Andreas, R. (2015). DENIAL OF LABOUR RIGHTS BY LIBERAL LEGAL REGIME IN THE OUTSOURCING SYSTEM. IMCoSS, 20–21.
[9] Simanjuntak, P. J. (2002). The New Law on Trade unions. 1–45.
[10] Tayauova, G. (2012). Advantages and disadvantages of outsourcing: analysis of outsourcing practices of Kazakhstan banks. Procedia - Social and Behavioral Sciences, 41, 188–195. https://doi.org/10.1016/j.sbspro.2012.04.023.
[11] Triyono. (2011). Outsourcing Dalam Perspektif Pekerja Dan Pengusaha. Ppk-Lipi, 6 (1). http://dspace.uii.ac.id.
[12] Xiaohua, L. (2008). An Empirical Study on Public Service Motivation and the Performance of Government Employee in China UNE ÉTUDE EMPIRIQUE SUR LA MOTIVATION DU SERVICE PUBLIQUE ET LA PERFORMANCE DES EMPLOYÉS DU GOUVERNEMENT EN CHINE. Canadian Social Science, 4 (2), 18.
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  • APA Style

    Bachrul Amiq, Liosten Rianna Roosida Ully Tampuboon, Edy Widayat. (2021). The Existence of Trade Union on the Implementation of Outsourcing Worker Policy in the Rights of Labour: Case from Indonesia. Journal of Public Policy and Administration, 5(1), 24-29. https://doi.org/10.11648/j.jppa.20210501.14

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    ACS Style

    Bachrul Amiq; Liosten Rianna Roosida Ully Tampuboon; Edy Widayat. The Existence of Trade Union on the Implementation of Outsourcing Worker Policy in the Rights of Labour: Case from Indonesia. J. Public Policy Adm. 2021, 5(1), 24-29. doi: 10.11648/j.jppa.20210501.14

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    AMA Style

    Bachrul Amiq, Liosten Rianna Roosida Ully Tampuboon, Edy Widayat. The Existence of Trade Union on the Implementation of Outsourcing Worker Policy in the Rights of Labour: Case from Indonesia. J Public Policy Adm. 2021;5(1):24-29. doi: 10.11648/j.jppa.20210501.14

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  • @article{10.11648/j.jppa.20210501.14,
      author = {Bachrul Amiq and Liosten Rianna Roosida Ully Tampuboon and Edy Widayat},
      title = {The Existence of Trade Union on the Implementation of Outsourcing Worker Policy in the Rights of Labour: Case from Indonesia},
      journal = {Journal of Public Policy and Administration},
      volume = {5},
      number = {1},
      pages = {24-29},
      doi = {10.11648/j.jppa.20210501.14},
      url = {https://doi.org/10.11648/j.jppa.20210501.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jppa.20210501.14},
      abstract = {The form of deviation in the application of outsourcing policy and the system of work agreement for a certain time include: (1) the company has not classified the core and noncore business; (2) outsourcing workers and contract workers are not included in the worker's social security program, (3) outsourcing workers have no job security, career guarantees, and continuity of work; and (4) the tendency of job hire companies and employment service providers to pay wages lower than the regency minimum wage. Irregularities in the implementation of outsourcing policies led to conflicts of interest, disharmonious organizational communication, and mistrust of workers towards management. This problem triggerred demonstrations and strikes by workers and trade unions. On the other hand, supervision and guidance from the local manpower office had not been effective. Therefore, the role and existence of trade unions were necessary to fight for workers 'rights and legal certainty to protect workers' rights. The results of this study revealed the existence of trade unions through mass demonstrations nationally and to reject the outsourcing system can pressure the East Java Governor to conduct a moratorium on outsourcing and the Indonesian government to design Omnibuslaw outsourcing. On the one hand, Omnibuslaw aims to facilitate the outsourcing system and on the other hand provides a favorable compensation for workers in the form of a pension guarantee. Previous research showed that trade union advocacy on the implementation of the Law of the Republic of Indonesia No. 21 of 2000 produced a model of trade union advocacy and the role of trade unions in determining district minimum wages. This research was a downstreaming from previous research conducted at employer companies, union outsourcing companies, and labour agencies in East Java.},
     year = {2021}
    }
    

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  • TY  - JOUR
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    AB  - The form of deviation in the application of outsourcing policy and the system of work agreement for a certain time include: (1) the company has not classified the core and noncore business; (2) outsourcing workers and contract workers are not included in the worker's social security program, (3) outsourcing workers have no job security, career guarantees, and continuity of work; and (4) the tendency of job hire companies and employment service providers to pay wages lower than the regency minimum wage. Irregularities in the implementation of outsourcing policies led to conflicts of interest, disharmonious organizational communication, and mistrust of workers towards management. This problem triggerred demonstrations and strikes by workers and trade unions. On the other hand, supervision and guidance from the local manpower office had not been effective. Therefore, the role and existence of trade unions were necessary to fight for workers 'rights and legal certainty to protect workers' rights. The results of this study revealed the existence of trade unions through mass demonstrations nationally and to reject the outsourcing system can pressure the East Java Governor to conduct a moratorium on outsourcing and the Indonesian government to design Omnibuslaw outsourcing. On the one hand, Omnibuslaw aims to facilitate the outsourcing system and on the other hand provides a favorable compensation for workers in the form of a pension guarantee. Previous research showed that trade union advocacy on the implementation of the Law of the Republic of Indonesia No. 21 of 2000 produced a model of trade union advocacy and the role of trade unions in determining district minimum wages. This research was a downstreaming from previous research conducted at employer companies, union outsourcing companies, and labour agencies in East Java.
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Author Information
  • Faculty of Law, Dr Soetomo University, Surabaya, Indonesia

  • Faculty of Economic and Business, Dr. Soetomo University, Surabaya, Indonesia

  • Faculty of Teacher Training and Education, Dr, Soetomo University Surabaya, Surabaya, Indonesia

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