4.3. Collective Bargaining

9 Oct 2014

One or more registered unions can engage in collective bargaining with an employer, depending on the number of unions in the enterprise and the percentage of workers they represent. Negotiations should be conducted amicably and in good faith, based on the free intention of the parties.

If one or more unions exist, the employer should not undermine them by negotiating directly with elected worker representatives or individual workers, for example, by offering better working conditions to non-unionized workers under individual work agreements.

LEGAL REFERENCES:

MANPOWER ACT NO. 13 OF 2003, ART. 116-132 [UU KETENAGAKERJAAN NO. 13 TAHUN 2003, PASAL 116-132];
CONSTITUTIONAL COURT DECISION NO.115/PUU-VII/2009 OF 2010 [KEPUTUSAN MAHKAMAH KONSTITUSI NO. 115/PUU-VII/2009 TAHUN 2010];
MOMT REGULATION NO. PER.16/MEN/XI/2011, ARTS. 12-29 [PERATURAN MENAKERTRANS NO. KEP.16/MEN/XI/2011, PASAL 12-29].

4.3.1. Collective Bargaining Agreement

There can only be one Collective Bargaining Agreement (CBA) in an enterprise, and it applies to all workers.

A CBA should only include terms that are at least as favourable to workers as the terms and conditions required by national law. If a CBA contains provisions that run counter to national law, those provisions are considered null and void, and national requirements apply.

At a minimum, a CBA must contain the name and address of the company; the parties’ names and addresses; the rights and obligations of the employer, union and workers; the period during which the agreement is valid; and the signatures of those involved in making the agreement.

A CBA is valid for two years, but this can be extended for up to one additional year based on a written agreement between the employer and the union(s).

CBA negotiations may be started as early as three months prior to the expiration of an existing agreement. If the negotiations fail to result in an agreement, the existing CBA remains valid for a maximum of one additional year.

Employers and unions must implement all provisions of the agreement, and inform workers about its contents.

CBAs must be written in Bahasa Indonesia and signed by the employers and union representatives.

LEGAL REFERENCES:

TRADE UNION ACT NO. 21 OF 2000, ARTS. 4, 25 [UU SERIKAT PEKERJA NO. 21 TAHUN 2000, PASAL 4, 25];
MANPOWER ACT NO. 13 OF 2003, ARTS. 116, 118, 123-124, 126 [UU KETENAGAKERJAAN NO. 13 TAHUN 2003, PASAL 116, 118, 123-124, 126];
MOMT REGULATION NO. PER.16/MEN/XI/2011, ARTS. 12-29 [PERATURAN MENAKERTRANS NO. KEP.16/MEN/XI/2011, PASAL 12-29].

4.3.2. Single Union

If there is only one labour union in a factory, this union has the right to represent workers in negotiating the collective bargaining agreement, provided that more than 50% of the workforces are union members.

If less than 50% of workers are union members, a vote is held to determine whether the union can represent the workers in collective bargaining. The vote is organized by a committee comprised of union officials and representatives of non-unionized workers and is witnessed by a government official responsible for manpower affairs and the employer.

If the union wins the support of more than 50% of the workers, the union can negotiate a collective bargaining agreement. If less than 50% of workers vote in favour of the union negotiating a CBA, the union can submit another request to negotiate six months after the vote is held.

LEGAL REFERENCES:

MANPOWER ACT NO. 13 OF 2003, ARTS. 119, 122 [UU KETENAGAKERJAAN NO. 13 TAHUN 2003, PASAL 119, 122];
MOMT REGULATION NO. PER.16/MEN/XI/2011, ARTS. 16 [PERATURAN MENAKERTRANS NO. KEP.16/MEN/XI/2011, PASAL 16].

4.3.3. Multiple Trade Unions

In factories with multiple unions, a maximum of three unions or a group of unions, each representing at least 10% of all workers in the enterprise, can form the negotiating team with members determined in proportion to the number of members in each union.

LEGAL REFERENCES:

MANPOWER ACT NO. 13 OF 2003, ART. 120(3) [UU KETENAGAKERJAAN NO. 13 TAHUN 2003, PASAL 120(3)];
CONSTITUTIONAL COURT DECISION NO.115/PUU-VII/2009 OF 2010 [KEPUTUSAN MAHKAMAH KONSTITUSI NO. 115/PUU-VII/2009 TAHUN 2010];
MOMT REGULATION NO. PER.16/MEN/XI/2011, ART. 17 [PERATURAN MENAKERTRANS NO. KEP.16/MEN/XI/2011, PASAL 17].

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