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

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.