Apindo: Collective Labor Agreement Absent in 70 Percent Companies

TEMPO.CO, Jakarta - The Indonesian Employers Association (Apindo) called for the government to incentivize enterprises which will help bolster the number of collective labor agreement (CLA). Apindo revealed that only 30 percent of companies have CLAs.

Apindo Chairman Harijanto said that business employers in Indonesia with CLAs amount to 14,423. “70 percent of employers have yet made collective labor agreements,” he said on Monday, February 4.

The small figures are mainly due to both sides of the spectrum, business owners and workers, that are not used to bipartite negotiations, which results in a tougher negotiation when CLA is eventually introduced.

“Each party has lost mutual trust in each other which should be the basis of a good industrial relationship,” said Harijanto.

Moreover, Apindo said that they continue to provide training programs for business practitioners and advises the creation of CLA with company-level labors union, as the existence of such union is required before earning a CLA.

Apindo argues that government incentives will be able to boost the number of CLA in enterprises or companies. Incentives can range from the ease of permits, reports, foreign workers’ contribution fee relief, and many more.

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