Globalisation, Decent Work & and Challenges facing trade unions. Arun Kumar/ACTRAV-ILO-Bangkok

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1 Globalisation, Decent Work & and Challenges facing trade unions Arun Kumar/ACTRAV-ILO-Bangkok

2 Indonesian economy in global context: How is Globalization Changing the world of work? Participants views

3 Indonesian Economy Today Southeast Asia's largest economy, with abundant and diverse natural resources largest workforce in SE Asia: about 128 million (Feb 2016), relatively young youth dividend possible micro, small & medium sized enterprises dominate, providing employment to about 108 million workers and contributing about 60% of the GDP; Indonesia s GDP is forecast to grow at 5% a year over , By 2020, Indonesia s GDP forecasted to exceed $1 trillion! - How will workers share in this prosperity?

4 The world of work in Indonesia today Growing wage employment but at least 1/3 rd of the workers are in low pay. Almost 50% women in regular employment in low pay; Out of 128 million workers, how many are organized? No. of CBAs (2016): 13,160 - less than 5% of the firms (269, 282 regd. cos.) Labour flexibility & changing nature of employment rise in precarious work, disguised employment relationships Implications of flexibilization for workers rights (right to organize, union formation, collective bargaining, social security, skills acquisition, safe work, labour laws)

5 If economic growth has to benefit all Economic growth is necessary BUT NOT SUFFICIENT condition for well being of the majority of the people of the country; What lessons can we learn from the Global Economic Crisis? Role of wage policies and labour standards in promoting sustainable growth and decent work Organizing & Collective Bargaining for sharing in the gains from growth - how can we improve our policies and practices in this regard? Decent Work what is it?

6 Decent Work for inclusive growth & shared prosperity So, what is Decent Work? Work that is productive, gives fair income, security in the workplace & social protection for the family, equal opportunities & treatment, better prospects for - personal devt & social integration, freedom to organize & participate in decision making concept of decent work encompasses both individual and collective dimensions (C 87 & 98)

7 Decent Work to be achieved thru actions on 4 pillars productive employment & sustainable enterprises social protection/ social security for all Standards & basic rights at work Promotion of Social dialogue, including Collective bargaining UNIVERSALITY & INTERDEPENDENCE: the objectives to be promoted by all & are inseparable, interrelated and mutually supportive (SJD, 2008)

8 Decent Work: nationally defined goal thru tripartite dialogue, based on national context & needs No Ceiling, Perpetual progress Relative & multiple paths Social floor - basic rights at work

9 Pre-conditions for Decent Work: Fundamental Rights at Work Principle: All those who work, have rights at work! Freedom of Association C. 87 Freedom of Association, 1948 F r e e d o m f r o m Di C C E q u a l D i s c r i m i R e m u n e r ( a E t m i o p n l, o y m 1951 O c c u p a t i o F r e e d o m f r o m F o M r c i e n d i m La u b m o u r Ag e f o r C. 2 9 C. 98 Right to Collective Bargaining, 1949 C C C F o r c e d L a A b b o o u l r i, t i o n M oi fn i m u W m o r A s g t e F o 1930 F o r c e d L a f b o o r u r E, m p l C o h y i m l d e n L t a, b

10 So, what is the current situation in Indonesia? Employment conditions? Wages and collective bargaining? Social Protection? Labour standards & workers rights? Women workers work? Social Dialogue & Tripartitism?

11 Work should life you out of poverty, Not keep you there In Cambodian context, what changes are needed in development & labour policies for promoting decent work?

12 Sources of Trade Union Power in a market economy?

13 Group Work: Industry Situation Review G1. What are the key issues related to earnings, employment conditions & Industrial relations in the factories? G2. What are the factors that prevent unions from playing effective role in workers representation, dispute resolution & collective bargaining? G3. What are the management policies in regard to recognition of trade unions, dialogue with unions, main difficulties in exercise of collective bargaining rights for unions? G4. What are the strengths & weaknesses of TUs in your country? Common Question to all groups: What are the main priorities of trade unions in Indonesia? List them.