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I ntensive Course Human Resources Development Management Understanding Government Regulations UU 21/2000 UU 13/2003

I ntensive Course Human Resources Development Management Understanding Government Regulations UU 21/2000 UU 13/2003 & UU 2/2004. Oleh : Dr.Ir.J.F.X.Susanto.S.MBA.,MM . Overview (1-2). Peraturan ketenagakerjaan masih sering berubah. Gejolak dan unjuk rasa buruh.

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I ntensive Course Human Resources Development Management Understanding Government Regulations UU 21/2000 UU 13/2003

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  1. Intensive Course Human Resources Development ManagementUnderstanding Government RegulationsUU 21/2000UU 13/2003 & UU 2/2004 Oleh : Dr.Ir.J.F.X.Susanto.S.MBA.,MM

  2. Overview (1-2) • Peraturan ketenagakerjaan masih sering berubah. • Gejolak dan unjuk rasa buruh. • Mutu tenaga kerja di Indonesia. • Era globalisasi dan pasar bebas. • Modal asing dan pertumbuhan ekonomi. • Masuknya penduduk usia kerja kelapangan kerja.

  3. Overview (2-2) • Fungsi Hubungan industrial (Industrial Relations) • HIP (Hubungan Industrial Pancasila) • Sistim multi union diperusahaan • Serikat Pekerja, SPTP • Bipartite (Pengusaha & SP) • Tripartite (Depnaker, APINDO, SPSI)

  4. Hukum Perburuhan Terakhir • UU 21 / 2000 – Serikat Pekerja • UU 13 / 2003 - Ketenagakerjaan • UU 02 / 2004 – PPHI (Penyelesaian Perselisihan Hubungan Industrial)

  5. UU 21 / 2000 - Workers Unionism

  6. Law 21/2000 : Workers Union • Issued after the ratification of ILO Convention No. 87 concerning Freedom of Association, by President Decree No. 83/1998. • Three international issues : • Freedom to organization • Human Rights (HAM) • Environmental • There are 15 Chapters, 47 Articles. • Established for and by the workers, inside or outside the company for the purpose of protecting and improve the social welfare of the workers. • Trade Union is established in one or more companies. • Basic principle : not against the “Pancasila & UUD 1945”.

  7. Law 21/2000 : Chapter I General Definitions • A workers’ union is an organization which is established from, by and for workers. • The term worker / labor is defined as any person who works for a wage or other form of a remuneration package.

  8. Law 21/2000 : Chapter II Statutory Basis, Characteristics and Objectives • Workers’ union must accept, and their statutory basis must not run against the state ideology of Pancasila and the 1945 Constitution. • Union, federation and confederation are obliged to be free, open, independent, democratic and responsible. • Functions : negotiation and making of CLA, settlement of disputes, representing workers, defense of the right and interest of their members.

  9. Law 21/2000 - Chapter III Formation of Unions

  10. Law 21/2000 - Chapter IV Membership • Union, federation and confederation shall be regulated by its constitution. • Must not limit or discriminate on the ground of political allegiance, religion, ethnicity or sex. • Worker not allowed to join more than one union. • Managerial position employees are not allowed to become union officials. • A worker may resign or leave his/her union membership by written notification. • A union is allowed to be a member of a federation. • A federation is allowed to be a member of a confederation.

  11. Law 21/2000 - Chapter V Notification and Recording • Union, federation and confederation must be registered at the local government office. • Local government office must keep record of the union, federation and confederation and will issue a record number to the union, federation and confederation within 21 days.

  12. Law 21/2000 - Chapter VI Rights and Obligations of Unions • Registered union has the right : • To negotiate with the company for CLA. • To represent workers in industrial dispute settlement • To represent worker in manpower council and institution. • To establish institution or conduct labor-related activities in improving workers social welfare. • To conduct other activities within manpower development provided not contrary to the prevailing regulation. • The Union may affiliate and/or cooperate with international organizations, provided that such affiliation or cooperation does not run against national statutory rules and regulations.

  13. Law 21/2000 - Chapter VII Protection of the Right to Organize • It is illegal to prevent workers to form a union, joining or leaving a union or carrying out union activities. • The prohibited actions include ; dismissal, suspension or otherwise prejudicing a worker at work; withholding or reducing wages; intimidation; campaigning against the establishment of a union. • Employers must allow union committee members or members to participate in union activities as provided under a CLA.

  14. Law 21/2000 - Chapter VIII Finances and Assets • Finances and assets of the Union must be used in line with its constitution. • Union officials are accountable for the use of fund and are obliged to keep record. • Financial report have to be submitted to the members.

  15. Law 21/2000 - Chapter IX Settlement of Disputes Between Unions, Federations and Confederation • Any industrial dispute is settled under mutual respect. • If consensus is not achieved, will be settled according to the prevailing regulation.

  16. Law 21/2000 - Chapter X Dissolution of Unions, Federations and Confederations • Union is dissolved by a decision of the members; the company has closed down resulting termination of employment. • The courts may dissolve the union if its statutory is contradictive to Pancasila ideology & UUD ‘45.

  17. Law 21/2000 - Chapter XI Inspection and Investigation • The inspection officials from Manpower office are functioning to ensure the right to associate and conduct their activities. • Besides normal police officers, inspection officials from Manpower Dept. are also functioning to conduct investigation on criminal offense.

  18. Law 21/2000 - Chapter XII Penalties in Relation to Offences Under the Act • The penalties include the revocation of the union registration identity number. • Those who are convicted in interference the right to organize will be subject to at least 1 year in prison 5 years maximum or fine minimum Rp.100 millions Rp.500 millions maximum.

  19. Law 21/2000 : Chapter XIII – Miscellaneous Regulations • Government employees have freedom of association. • The implementation of this right is to be regulated by separate legislation.

  20. Law 21/2000 : Chapter XIV – Transitional Arrangement • Existing Unions have to renew their registration number 1 year at the latest after the issuance of this law. • After 1 year re-registration is not fulfilled, will be regarded as no registration.

  21. Law 21/2000 : Chapter XV- Coming Into Force of the Act • This law was issued on 4 August 2000 and came into effect immediately. • Signed by the President of Republic of Indonesia, Abdurrahman Wahid.

  22. UU 13 / 2003 Issued 25 March 2003 • Jumlah 18 Bab • Jumlah Pasal 193 • Kepmen & Kepres yang akan diterbitkan sebanyak 42 buah.

  23. Salient (important parts) of - Act 13 / 2003

  24. Manpower Law - Act 13/2003

  25. Manpower Law - Act 13/2003

  26. Termination • Termination of Employment : • Resignation • Retirement / Pension • Retrenchment (Redundancy) • Dismissal • Death • Termination for cause : Art. 158 UU 13/2003 • Minor fault • Grave fault / serious offense • Termination benefits : • Severance payment (pesangon) • Long service payment (uang penghargaan masa kerja) • Compensation payment • Employment termination permit : • P4D (below 10 employees) • P4P (above 10 employees)

  27. Severance Payment (Pesangon) - Act 13/2003

  28. Service Payment - Act 13/2003

  29. Compensation Payment Act 13/2003 – Art. 156.4 • Annual leave not yet taken, and still valid. • Transportation cost for repatriation of the employee and family. • Housing and medical 15% of the termination and service payment. • Others as determined by Industrial Dispute Settlement Committee.

  30. P4D/P Decision on Termination Settlement - Act 13/2003 Nil SE Men B.600/05

  31. List of Minister Decrees to come subsequent to Act 13/2003 • Art 8 - Procedure of manpower information and manpower planning. • Art 10 - Competency standard – 227/MEN/2003. • Art 14 - Procedure of permit to conduct work training – 229/MEN/2003. • Art 16 - Accreditation body establishment – 225/MEN/2003. • Art 18 - Independent national profession certification body. • Art 20 - National training system. • Art 25 - Overseas on the job training procedure – 226/MEN/2003. • Art 30 - National productivity committee. • Art 34 – Overseas placement of manpower. • Art 38 – Type of position and classification eligible to mobilization fee – 230/MEN/2003. • Art 41 - Job opportunity coordination body. • Art 43 – Approval for expatriate utilization – 228/MEN/2003. • Art 44 - Standard competency of expatriates. • Art 46 - Positions close to foreigners.

  32. List of Minister Decrees to come subsequent to Act 13/2003 • Art 47 - Compensation paid by expatriates – 223/MEN/2003. • Art 49 - Local employees to replace expatriates. • Art 59 - Limited time contract provisions. • Art 71 - Working children. • Art 74 - Types of works prohibited to child workers – 235/MEN/2003. • Art 75 – Government effort to avoid working children. • Art 76 – Restriction & compulsory to female workers – 224/MEN/2003. • Art 77 - Working hours and overtime provisions – 234/MEN/2003. • Art 78 – Provision on overtime work and overtime pay- 102/MEN/VI/2004. • Art 79 - Annual leave and long leave provisions - 51/MEN/2004. • Art 85 - Types of works eligible on public holidays – 233/MEN/2003. • Art 87 - Work safety management system. • Art 89 - Minimum wage components. • Art 90 – Procedure to postpone minimum wage – 231/MEN/2003. • Art 92 - Structure and salary scale - 49/MEN/2004. • Art 97 – Minimum wage protection and fine sanction provision.

  33. List of Minister Decrees to come subsequent to Act 13/2003 • Art 98 – Formulation of Wage Council • Art 100 – Fringe benefits provision • Art 101 – Development of employees cooperatives. • Art 106 - Bipartite body establishment – 255/MEN/2003. • Art 107 - Tripartite body establishment • Art 115 - Procedure of Company Policy development and approval – 48/MEN/2004. • Art 133 - Procedure of CLA development • Art 142 - Legal consequences of illegal workers strike – 232/MEN/2003. • Art 156 – Alteration of severance, service and compensation payment of employment termination. • Art 178 - Manpower supervision and control. • Art 179 - Procedure of report submission of manpower supervision and control. • Art 190 – Administrative Sanction

  34. UU 02 / 2004 – PPHI (Penyelesaian Perselisihan Hubungan Industrial) Definition of industrial relations dispute : Dispute between the company and the worker / union.

  35. Types of Disputes • Dispute on rights • Dispute on interest • Dispute on employment termination • Dispute among trade unions within a company

  36. 1. Dispute on Rights Dispute arising from failure to fulfill one’s rights due to different understanding or interpretation in the implementation of labor laws, work agreement, company regulations or collective labor agreement.

  37. 2. Dispute on Interest Dispute arising from different opinions or positions on the drafting and/or change of work conditions stipulated in the work agreement, company regulations or collective labor agreement.

  38. Dispute on Employment Termination Dispute arising from different opinions regarding employment termination.

  39. Dispute Among Trade Unions Within a Company Disputes between trade unions within one company due to different opinions on membership, and implementation or exercise of rights and obligations.

  40. Settlement Procedure Outside Industrial Court • Faster • Accommodate sense of justice of the parties concerned. • Voluntary • Friendly manner

  41. 4 Types of Settlement Outside Industrial Court (IC) • Bipartite negotiations • Mediation • Conciliation • Arbitration

  42. 1. Bipartite Negotiation Bipartite consist of management representatives and workers representatives. Bipartite settlement is first priority before other party is invited to help in settling the dispute.

  43. 2. Mediator Mediator is government official responsible for mediating labor disputes. Mediator is assigned by Minister to mediate and shall be obliged to provide a written recommendation to both parties as to resolve the disputes.

  44. 3. Conciliator Conciliator is assigned by the Minister to give written recommendation to the parties in resolving the disputes of interest, termination and dispute among unions in a company.

  45. 4. Arbitrator Arbitrators refer to one or more persons appointed by the parties involved in a dispute from the list of Arbitrators provided by the Minister, to resolve disputes on interest and dispute between unions in a company.

  46. Dispute Settlement Mechanism by Bipartite Negotiation Record At Industrial Court Registration Slip Mediation ( 4 ) Conciliation ( 3 ) Arbitration ( 2 ) Court ( 4 ) No Consensus Consensus Collective Agreement Bipartite Negotiation Minutes Company / Management Dispute Termination, Rights, Interest & Dispute Among Unions

  47. Bipartite Negotiations • Bipartite approach as first priority and compulsory. • Negotiate first before inviting any third party, minutes signed. • Settlement should be reached within 30 working days. • Signed collective agreement shall become law and registered at Industrial Court. • Disagreement, one of the parties to file case at the Manpower office.

  48. Dispute settlement mechanism by Mediation INDUSTRIAL COURT Record At Industrial Court Registration Slip No Consensus Consensus Collective Agreement • Mediator produces suggestion. • Suggestion submitted in 14 days. • Both parties reply the suggestion within 14 days. • No reply regarded as refusing / rejection. • Agree upon the suggestion, Collective Agreement is to be produced within 6 days. Mediation Bipartite Negotiation Minutes Company / Management Dispute Termination, Rights, Interest & Dispute Among Unions

  49. Mediation • Mediator is a government official. • The 4 types of disputes can be settled thru this mediation. • Case must be examined within 7 days after written request. • Written agreement reached, to be filed at Industrial Court. • Agreement not reached, mediator issue written recommendation within 10 days. • Both parties should give opinion within 14 working days. • Either party fails to give opinion regarded to have rejected the recommendation. • Mediator must complete the mediation within 30 working days.

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