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A Government representative informed the Committee that, in the momentum and spirit of reform, the Government had taken several important steps to ensure full compliance with the Convention. These included the signature the previous week by the President of the Republic of a decree for the ratification of Convention No. 87, which would be followed by the drafting of a new Trade Union Bill. On 27 May 1998, the Minister of Manpower had issued a new Ministerial Regulation (No. 5 of 1998) which cancelled the previous Ministerial Regulation (No. 3 of 1993) on the registration of trade unions. The new Regulation permitted national and regional trade unions to seek registration at the company level at the relevant government office by tabling with the request the list of its executive officers, constitution and members. This new system had allowed the trade union known as Serikat Buruh Sejahtera Indonesia (SBSI) to be recognized at last as an independent trade union; its representatives had been included in the Indonesian tripartite delegation to this session of the Conference.
With reference to the newly adopted Act No. 25/1997, she stated that it set out the basic principles of labour which would be further elaborated in implementing regulations, of which 12 were currently being prepared. They were expected to be finalized by the beginning of October 1998, so that the Act could enter into force. Act No. 25 not only encompassed the principles of the ILO's seven basic Conventions, but also facilitated ratification of the remaining four basic Conventions which her Government had not yet ratified. The Government had already ratified Convention No. 87, and was preparing the instrument of ratification for Convention No. 138. The others would be considered in due time. She therefore hoped that her Government would be in a position to respond fully to the concerns expressed by the Committee of Experts on the issues of protection against acts of anti-union discrimination, protection of workers' and employers' organizations against acts of interference by each other and restrictions on collective bargaining. With regard to the freedom of association of public servants, she stated that the Government fully recognized the right of every worker to associate freely, as set out in Convention No. 87.
In conclusion, she endorsed the appeal made in the Conference Committee by Mr. Muchtar Pakpahan for ILO technical assistance in the drafting of new labour legislation and hoped that such assistance could be provided by the Secretariat in Geneva or the South-East Asia and the Pacific Multidisciplinary Advisory Team. The Government, together with the social partners, would continue to identify the remaining regulations which were not consistent with the spirit of reform.
The Workers' members thanked the Government representative for the information furnished and said that they had been following the situation in Indonesia very closely. The freeing of Muchtar Pakpahan (whose speech before the Committee is reproduced at the end of the discussion of this case), the recognition of the SBSI and the ratification of Convention No. 87 were all signs of progress in the observance of trade union rights which made it possible to look forward to a more constructive collaboration with the ILO than had existed in the past. The effective application of fundamental standards, and in particular Convention No. 98, sometimes required significant changes in legislation, institutions and practices in order to establish the rule of law which was essential for the exercise of civil and political rights and freedoms. The "security approach", which had long influenced the industrial relations system, urgently needed to be replaced by measures guaranteeing the rule of law. This case had been one of the most well-known discussed by the Conference Committee, which had examined it on five occasions since 1991 and the Committee on Freedom of Association had issued very firm conclusions and recommendations in several related cases. The Conference Committee had insisted, as had the Committee of Experts, that specific legislation be adopted providing effective protection for workers against acts of anti-union discrimination, as well as protecting unions against interference by employers, public authorities or the security services. Moreover, the Government needed to establish a solid legal framework, instead of regulating fundamental aspects of industrial relations through decrees or circulars. The Committee of Experts had indicated in this regard that the draft legislation of 1997 contained several elements which were not in conformity with the Convention. The draft legislation did not improve the protection of workers against acts of anti-union discrimination. It did not contain any provision guaranteeing the protection of trade union organizations against acts of interference by employers. In sections 48 and 49, it placed excessive restrictions on the registration of enterprise-level unions and their federations, which amounted to restrictions on collective bargaining which, in contrast, needed to be promoted. Moreover, it was absolutely necessary to clarify the methods for the determination of the conditions of employment of public officials. In view of the recent changes, it was necessary to urge the Government to embark without delay on the far-reaching reforms needed to establish a really democratic system of industrial relations. Effective guarantees of civil and political rights were indispensable for the full respect of freedom of association and the right to collective bargaining. The ILO's technical assistance, which had been requested by the Government representative, could certainly assist in the substantial tasks which needed to be accomplished. However, a direct contacts mission would be necessary to better identify the principal priorities and accelerate the necessary changes.
The Employers' members, recalling that restrictions of freedom of association affected both employers and workers, observed that the shortcomings in the application of the Convention had been examined on five occasions since 1991, and most recently in 1997. The problems raised related to three areas: protection against acts of anti-union discrimination; protection of employers' and workers' organizations against acts of interference by each other; and excessive restrictions on trade union's functioning and activities and on the collective bargaining process. In the past, Government representatives had referred to various regulations and draft legislation designed to improve the situation, but the Committee of Experts had still been of the opinion that the Labour Bill of 1997 was not sufficient to meet the requirements of the Convention in a number of areas. One of these concerned the restriction that collective bargaining could only be conducted by registered trade unions with the support of the majority of workers within the company concerned. It was not clear whether this meant that the majority of workers in the enterprise had to support the collective bargaining efforts of the trade union, or whether the trade union needed to have the membership of a majority of workers in the enterprise. There had nevertheless been positive developments since 1991, although they had not been considered by the Committee of Experts to be fully satisfactory. The Government representative had informed the Committee of further changes, which were not surprising in view of recent events. These constituted important beginnings of major reforms. However, emphasis would have to be placed on making much broader changes in labour law in the near future. The Employers' members welcomed the Government's acceptance of the comments made by the Committee of Experts which demonstrated a considerable advance in its approach. Real progress now needed to be made in the country itself. They therefore hoped that these expectations would be fulfilled and that the Government would make considerable efforts to resolve the shortcomings noted in recent years. Although the Government had requested technical assistance, it should be urged to accept the help that could be provided by a direct contacts mission.
The Government member of Iceland recalled that the previous year he had spoken on behalf of the Nordic countries, the Netherlands and the United Kingdom in support of the urgent appeal to the Government to take the necessary measures to bring the situation into conformity with the Convention and to release from prison the independent labour leader Muchtar Pakpahan. This year, speaking on behalf of the Nordic Governments of Denmark, Finland, Iceland, Norway and Sweden, as well as the Governments of Austria, Belgium, Canada, Germany, Italy, Japan, the Netherlands, Portugal, Turkey, the United Kingdom and the United States, he expressed particular pleasure at the positive developments in the present case. These included the decision by the Government to ratify Conventions Nos. 87, 105, 111 and 138 and to release Mr. Pakpahan, who had addressed the Conference Committee two days earlier. He urged the Government to release other prisoners who were still detained for their ideals. Moreover, they recognized that there was still room for further progress to be made so that the fundamental rights set forth in the Convention were respected in law and in practice. He looked forward to such progress and would monitor further developments closely. He also welcomed the request by the Government for ILO technical assistance.
The Worker member of the United States observed that this case was one which offered new hope and promise after years of stagnation and frustration. The case had been discussed five times over the past six years and it was only now, in the wake of dramatic events in the country, that real change appeared on the horizon. For decades, the Government had imposed a military-controlled trade union monopoly on the workers. The statements made by the Government representative which indicated that those days were over were inspirational and reassuring. In order to bring the country into compliance with the Convention, however, the Government had to accept the fact that remnants of the old system still existed in workplaces throughout the country and would pose a serious obstacle to organizing unions of workers' own choosing, independent of government, political parties and employers. This situation required proactive measures by the Government to create a climate in which workers would feel free and secure to choose for themselves. The Experts had provided a good outline of the legal changes needed to reform the labour law in order to create such a climate: the need to strengthen the protection of workers against discrimination for legitimate union activity, especially in the area of attempting to organize new unions and recruit new members; the need to protect workers' organizations from employer interference; and, the need to remove restrictions on collective bargaining not in compliance with the Convention. As concerned the second area, current law allowed for the creation of enterprise level unions or SPTPs. There had been a well founded concern that many if not most of the SPTPs organized during the past few years were employer-dominated or yellow unions. This practice should no longer be encouraged if unions which could really speak for workers were to emerge. He believed that in order for the Government to begin to take positive steps to overcome its economic crisis it would need to build a social consensus for measures which would be painful and would affect the daily lives of millions of people. The key to building such a consensus would be the perception that the pain would be shared equitably by all sectors of society and that workers, through their unions, were participating in the development and implementation of an economic recovery plan. A new labour law which not only permitted but encouraged the emergence of a social partner to fulfil this role would be essential for the country's economic recovery. The American trade union movement had followed closely developments in Indonesia for many years. It had used all means available to secure the release of Muchtar Pakpahan and other imprisoned trade unionists, many of whom remained in prison. He asked the Government to move quickly to secure their release. The American trade union movement, in solidarity with the international movement, would continue to provide its support to the SBSI and other independent unions organized by workers to help them develop quickly their capacity to represent the interests of their members during such difficult but hopeful times for the country.
The Worker member of Spain welcomed the liberation of the trade union leader of SBSI, Mr. Muchtar Pakpahan, and considered that demands should be made with the same force for the liberation of other detained trade unionists. He said that now, more than ever, it was necessary to undertake in-depth reflection on the role of the ILO and of the Conference Committee in particular. The country was undergoing a financial, political and economic crisis with grave consequences for the economies of other countries, not only in Asia, but also in Latin America and Africa. He emphasized that prolonged reflection was required on the possibilities for ILO action at the present time in view of the changes facing those economies. Growth in Indonesia had been based on the violation of trade union rights and the denial of the basic rights of workers. This was a model which did not work and had a negative effect on the rest of the world. He emphasized in particular that the fundamental role of the ILO was to prevent social injustice. If the ILO's principles were not applied, crises such as the one which had happened in Indonesia, would continue to occur. In conclusion, he observed that reflection of this nature was particularly necessary as the twenty-first century approached and in view of the globalization of the economy, if the ILO wished to prevent social crises the world over.
The Worker member of the Netherlands congratulated the Minister of Manpower for commencing his political career with such a stirring deed as the ratification of Convention No. 87. He hoped that the Minister would address the problems relating to the application of Convention No. 98 with similar urgency. Many of these problems had been raised by the Committee of Experts for many years, yet the Government had done virtually nothing over the previous 12 months to respond to these criticisms. The major development during that time had been the adoption of a new Labour Bill. The previous year, he had personally requested the Government to request the views of the Office on the Bill and to transmit those views to Parliament. Unfortunately, the Government had not done so and the Office's comments on the draft text had not been taken into account. As a result, the Minister of Manpower had to face up to a situation in which the new legislation did not provide better protection of the rights guaranteed by the Convention. Moreover, the Bill conflicted with many of the fundamental provisions of Convention No. 87, which the Government had just decided to ratify. He therefore welcomed the Government's request for ILO technical assistance. He called upon the Government representative to answer a number of points: first, while welcoming the ratification of Convention No. 87, he noted that the question of ratification had not been submitted to Parliament and that trade unions and employers had not been consulted on this very important matter. He therefore hoped that the Government would not ratify other Conventions in the same hasty manner, but that it would do so after due consultation with the competent authorities and the representative organizations of workers and employers. Second, was the Government aware that many of the basic elements of the national situation were not in conformity with Convention No. 87 and would a new Labour Bill be developed which took its provisions into account? Did the Government agree that such important guarantees as the right to organize should be contained in the basic labour legislation, rather than in ministerial regulations, as was currently the case? Regarding the introduction of trade union pluralism in practice, would the SBSI only be able to be present in enterprises in which other trade unions (such as the SPSI, which had been the official single trade union) were not established? That would give the SPSI, which had enjoyed a government-granted monopoly position, an unjustified advantage. He suggested that a vote might be organized in the various workplaces so that the workforce could determine the organization by which it wished to be represented or that the workforce might be represented in collective negotiations by more than one organization. The resolution of these questions was vital for the development of genuine industrial relations in the country in the coming years. Moreover, while welcoming the Government's decision to extend the right to organize to civil servants, he wondered how their long-standing government-imposed attitude of neutrality and abstension of independent interest representations by representative trade union organizations would be overcome in practice. This was a practice of more than 30 years. He also wondered what would be done to overcome the more serious problem of all: the Government's security approach to industrial relations, which consisted of military supervision and interference in all trade union activities including strikes, demonstrations, presence at union meetings and the holding of union office by retired military personnel. This attitude of oppression and dependence instilled into the workers over the past three decades could not be abolished overnight. Finally, he requested the Government to indicate its attitude with regard to the continued imprisonment of political prisoners, and particularly trade union activists, including Dita Indah Sari, head of the Centre for Indonesian Workers' Struggle, who was kept under appalling conditions and three members of the SBSI local of Serang, West Java supported by a project of his organisation, namely Messrs. Sumantri, Suseno and Mahmud Hadi who had been released after a period of detention last Spring, but who were now facing criminal charges for activities which, according to ILO standards, were purely trade union activities. In conclusion, he appealed to the Government and the Office to further much more ILO involvement in IMF policies in the country so as to ensure that the social consequences for workers were taken into account when designing structural adjustment policies in the present traumatic economic development.
The Worker member of Greece recalled that Indonesia had been at the top of the list of countries which did not respect any freedoms since at least 1968. The Conference Committee had had occasion to confirm this when examining the application of other Conventions, including Convention No. 29. The changes which had occurred since the last session of the Committee of Experts offered real hope in this respect. They had already had an affect on the situation in practice, as illustrated by the liberation of Muchtar Pakpahan, whom the Conference Committee and the plenary had both had the opportunity to welcome. This progress should be recognized without any false euphoria. All the prisoners of conscience and opinion had to be freed, not just trade unionists. In the same way, workers from neighbouring countries needed to be treated with dignity. A direct contacts mission would be a sound initiative, since no delay in the provision of technical cooperation should be allowed to serve as a pretext for putting off the necessary measures. Admittedly, it would be premature to demand firm and detailed responses immediately from the Government on all the aspects of the case. Nevertheless, the Committee's conclusions should emphasize the need to give real effect in practice to ratified Conventions. They should also take note of the new developments and provide for a re-examination of the case next year to ascertain whether the promises which had been made had been put into practice.
The Employer member of the United States supported certain points made by the Worker member of the United States. He hoped that the Committee's report would emphasize the importance of workers being able to choose freely organizations to represent their interests and that employer-dominated organizations were counterproductive to a sustainable successful enterprise. He felt also that balanced legislation would help enable cooperation in the workplace, leading to economic success and, in turn, social well-being.
Another Government representative endorsed the concern expressed by the previous speakers that it had been necessary to spend so much time on this case, which had been examined by the Conference Committee on at least five occasions. Although the Government had reaffirmed its commitment to review the labour legislation, it needed to be understood that many of the labour laws had been inherited from periods long ago. For this reason, it had accepted the ILO's direct contacts mission in November 1993 to assist in clarifying the situation. One of the objectives of the new Labour Act No. 25/1997 had been to replace all the various Ordinances and Acts from previous eras, as well as to cover more recent issues such as labour market information, manpower planning and productivity. He reaffirmed that the advice given by the ILO direct contacts mission had been used and consultations had been held with the social partners and the relevant institutions concerning the Act. The process of formulating legislation in his country was similar to that in most other countries, in that draft texts were prepared by the Government after consultation with the competent institutions, including the social partners, before being enacted by Parliament. On this issue, Parliament had consulted the representatives of employers' and workers' organizations, including the SBSI, and NGOs. In addition, the comments made by trade unionists from all over the world had been passed on to Parliament and taken into consideration. The outcome of discussions between members of Parliament and the Government had been Act No. 25/1997, and the Government had done its best to accommodate the interests of all sectors of society. The Act would soon be followed by two Bills, the first on trade unions and the second on labour disputes. Detailed provisions relating to industrial relations could be included in these texts. The Minister of Manpower had set up a team the previous week to begin the process of the drafting of the Trade Union Bill. The new Minister had therefore made substantial progress in his short time in office. In response to the questions put by the Worker member of the Netherlands, he stressed that, in the context of the discussions that had been held with the social partners concerning the ratification of the four remaining basic ILO Conventions, it had initially been intended to ratify Convention No. 138 before the others, but had then been decided that Convention No. 87 should be ratified first in order to prepare the ground for the withdrawal of Ministerial Regulation 3/1993, which had been the subject of many of the Committee of Experts' comments. The Government would then proceed to the ratification of the remaining basic ILO Conventions in discussion with the social partners. With regard to the comments concerning trade union monopoly, he noted that there were over 1,000 independent trade unions in the country at the company level. Of the 160,000 enterprises in the country with 25 or more employees, the SPSI was represented only in 10,000, leaving much scope for independent trade unions in the remaining enterprises. In this respect, he pointed out that Act No. 25/1997 facilitated the possibility of having more than one trade union in an enterprise. More details on this issue could be included in the new Trade Union Bill, mentioned above. On the subject of prisoners, he reaffirmed the Government's commitment to review the situation of all those held in prison, especially for political reasons or because of their trade union activism. A progressive release of prisoners had been commenced, with more to come. He added, that the so-called "security approach" to trade union activities could now be discounted. In conclusion, he expressed his appreciation of all the comments made by the members of the Committee and emphasized that significant progress had been made by the new Government over a very short period, including the release of Mr. Pakpahan, the withdrawal of Ministerial Regulation 3/1993 and the ratification of Convention No. 87. His Government would welcome ILO technical assistance to speed up the work of complying with the comments of the Committee of Experts. The Government was endeavouring to do its best, but it had to be realized that it was not possible to change everything in such a short time.
Visit of Mr. Muchtar Pakpahan, President of the Trade Union Confederation Serikat Buruh Sejahtera Indonesia (SBSI)
The Chairman of the Committee on the Application of Standards welcomed Mr. Pakpahan, praised his trade union work in Indonesia carried out in a very difficult situation where there had been fear for his life. The Chairman recalled that this Committee had been carefully watching over the situation of Mr. Pakpahan and his organization, SBSI, for a number of years.
Mr. Pakpahan made the following statement:
Mr. Chairman, honourable delegates, dear brothers and sisters, first of all, I want to thank you Mr. Chairman, the Chairman of the Employers' group, and, in particular, my dear friend and brother, Willy Peirens, for giving me the honour and the joy of addressing you this evening.
It is a great honour for me because I can participate in the Committee on the Application of Standards of the ILO. But it is even more a joy for me, because at long last I have the chance to thank you officially on behalf of the SBSI for all that this Committee has done for the workers of Indonesia.
I thank the Workers' group because you have been faithful to the trade union mission and values. I thank the Employers' group because you have upheld the principles of the right to organize with honour. I thank the numerous Governments for your various interventions in support of the SBSI. To all of you I say, Trimakasih.
You, the honourable members of this Committee, have followed more closely than others the evolution of the SBSI in Indonesia. You know more than anyone else what we have gone through since 1992.
The SBSI tried to exercise its right to organize within the difficult context of dictatorial rule and a single official union. We tried to organize so that we could really defend the workers. Because of this we were put into prison, some of us were even tortured, our meetings were disrupted, our members were dismissed from their jobs, our offices were ransacked, our documents were seized ... Honourable members of this Committee, I will stop here because you know the story well.
On May 21, 32 years of Soeharto's dictatorial rule came to an end. After six years of sustained government harassment against the SBSI, all of a sudden we are experiencing changes at a breathtaking pace. I was released from prison some two weeks ago and the Government's monolithic union policy has been broken. The Government has committed itself to officially register the SBSI and to ratify several key ILO Conventions.
Despite these rapid changes, the reformation movement in Indonesia is demanding deeper changes in society. The movement is demanding the reform of the political bill, a speedy transition towards democracy through free and fair elections, and clean government in Indonesia. In addition to this, the SBSI is demanding, firstly, the release of all prisoners of conscience. Secondly, a complete reform of the legal framework and a new labour legislation that is in conformity with ILO labour standards. But above all, we demand the effective application of all the Conventions signed by the Indonesian Government.
So even though there has been progress, Mr. Chairman, we have to be vigilant. This is why, on behalf of the SBSI, I call on this honourable Committee to follow very closely the observance of all the commitments of the Indonesian Government now and in the future. We ask you to work for the release of all prisoners of conscience. We ask you to help us to ensure that the new labour legislation is in complete conformity with ILO Conventions and protects workers from repression, interference of the Government, anti-union discrimination and promotes collective bargaining. In this respect, we ask you to give us the necessary technical assistance, as soon as possible, to help us draft a new labour legislation for a democratic Indonesia, and to help us develop a democratic climate where these rights are really applied in practice.
Mr. Chairman, I am very touched by my presence in this Committee. I wish to end by paying homage to the Committee and to the ILO supervisory system especially as we commemorate this year, the 50th anniversary of Convention No. 87. This Committee is the conscience of the world of work. When you are in prison, you have no voice and you have no face. But Mr. Chairman, this Committee gave me a voice and made me visible. But above all else, the work of this Committee gave me strength. Strength to persevere and to stand up for what is right and what is just.
To stand up for freedom of association in Indonesia. Thank you.
The Committee noted the statement made by the Government representative and the discussions which took place in the Committee. It recalled that the Committee of Experts had been formulating comments for several years on the lack of sufficient measures to ensure protection against anti-union discrimination and interference, as well as the divergencies between the legislation and the promotion of collective bargaining called for by Article 4 of the Convention. The Committee noted with interest the positive steps recently taken by the Government, including the release from prison of some but not all trade union leaders and activists and the ratification of Convention No. 87. The Committee noted, however, that there were still a number of obstacles in the legislation impeding the full application of Convention No. 98. In these circumstances, the Committee urged the Government to take the necessary measures to repeal the severe restrictions imposed on free collective bargaining. It further urged the Government to take sufficient steps to ensure full protection of workers against acts of anti-union discrimination and to protect workers' organizations from acts of interference by the employer. The Committee noted that the Government had requested ILO technical assistance. The Committee expressed the firm hope that with the assistance of an ILO direct contacts mission the legislative and practical obstacles to free collective bargaining and a full application of the Convention would be removed. It trusted that the Government would supply next year a detailed report to the Committee of Experts on the concrete measures taken to bring the legislation into conformity with the Convention.