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Democratic Transition, Economic Crisis, and Labor Reform in Indonesia |
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Abstract:
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Although a series of labor law reforms that
strengthened basic labor rights were passed
in Indonesia soon after the fall of Suharto,
attempts to pass comprehensive reforms
affecting issues related to labor flexibility
have for the most part failed. While labor
has secured stronger political rights,
employers have been unable to roll back the
majority of provisions that defend labor
protection. Perhaps the most puzzling aspect
of the politics of labor reform is that while
labor played little role in bringing down
Suharto and is still quite weak and
fragmented, it managed to secure many gains
in labor law. I argue that labor success in
the immediate post-Suharto years can be
explained by international pressure to
restore basic labor rights and the early
remobilization of labor, in contrast to
employers, in the wake of the Asian financial
crisis. Although unions were weak they
managed to organize large and disruptive
protests whenever changes that promised to
increase flexibility were enacted. In
contrast, employers were caught off-guard
and showed few signs of acting as a coherent
interest group. By the end of 2000, however,
employers had counter-mobilized, and they
made rolling back some of these early gains
for workers a primary goal. This
reactivation of the peak business association
boded poorly for labor. However, the
strenuous opposition of both employers and
unions to two draft bills in the latter half
of 2002 led the committee overseeing the bills
in the legislature to institute a bipartite
process to revise them, and both business and
many unions chose to participate in this
process. This bipartite structure of
negotiations leveled the playing field
between unions and employers, and labor was
thus able to defend its political gains,
while employers were only partially
successful in achieving their goal of
increased labor flexibility. |
Most Common Document Word Stems:
union (190), labor (187), law (170), employ (126), worker (93), indonesia (62), strike (57), right (56), decre (52), govern (51), manpow (43), new (43), bill (43), year (42), act (41), regul (41), 2000 (40), intern (39), suharto (38), 2003 (37), polit (37), |
Author's Keywords:
|
labor rights, Indonesia, Southeast Asia,
democratization, economic adjustment |
|
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Association:
Name: American Political Science Association URL: http://www.apsanet.org
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Citation:
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MLA Citation:
| Caraway, Teri. "Democratic Transition, Economic Crisis, and Labor Reform in Indonesia" Paper presented at the annual meeting of the American Political Science Association, Philadelphia Marriott Hotel, Philadelphia, PA, Aug 27, 2003 <Not Available>. 2009-05-26 <http://www.allacademic.com/meta/p64062_index.html> |
APA Citation:
| Caraway, T. , 2003-08-27 "Democratic Transition, Economic Crisis, and Labor Reform in Indonesia" Paper presented at the annual meeting of the American Political Science Association, Philadelphia Marriott Hotel, Philadelphia, PA Online <.PDF>. 2009-05-26 from http://www.allacademic.com/meta/p64062_index.html |
Publication Type: Conference Paper/Unpublished Manuscript Review Method: Peer Reviewed Abstract: Although a series of labor law reforms that
strengthened basic labor rights were passed
in Indonesia soon after the fall of Suharto,
attempts to pass comprehensive reforms
affecting issues related to labor flexibility
have for the most part failed. While labor
has secured stronger political rights,
employers have been unable to roll back the
majority of provisions that defend labor
protection. Perhaps the most puzzling aspect
of the politics of labor reform is that while
labor played little role in bringing down
Suharto and is still quite weak and
fragmented, it managed to secure many gains
in labor law. I argue that labor success in
the immediate post-Suharto years can be
explained by international pressure to
restore basic labor rights and the early
remobilization of labor, in contrast to
employers, in the wake of the Asian financial
crisis. Although unions were weak they
managed to organize large and disruptive
protests whenever changes that promised to
increase flexibility were enacted. In
contrast, employers were caught off-guard
and showed few signs of acting as a coherent
interest group. By the end of 2000, however,
employers had counter-mobilized, and they
made rolling back some of these early gains
for workers a primary goal. This
reactivation of the peak business association
boded poorly for labor. However, the
strenuous opposition of both employers and
unions to two draft bills in the latter half
of 2002 led the committee overseeing the bills
in the legislature to institute a bipartite
process to revise them, and both business and
many unions chose to participate in this
process. This bipartite structure of
negotiations leveled the playing field
between unions and employers, and labor was
thus able to defend its political gains,
while employers were only partially
successful in achieving their goal of
increased labor flexibility. |
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| Document Type: |
.PDF |
| Page count: |
37 |
| Word count: |
12895 |
| Text sample: |
| Democratic Transition Economic Crisis and Labor Reform in Indonesia Teri L. Caraway Department of Political Science University of Minnesota Twin Cities caraway@polisci.umn.edu Prepared for the 2003 Annual Meeting of the American Political Science Association August 28 - August 31 2003 ***DRAFT*** Please do not cite without the permission of the author I. INTRODUCTION The Asian financial crisis swept through Indonesia in 1997 leaving economic and political instability in its wake. Soon afterwards Indonesia sought assistance from the IMF and |
| Law on Manpower (Indonesian Labor Law No 13/2003. Jakarta ILO/USA Declaration Project. 35 Suwarno S. and J. Elliott (2000). Changing Approaches to Employment Relations in Indonesia. Employment Relations in the Asia-Pacific: Changing Approaches. G. J. Bamber F. Park C. Lee P. K. Ross and K. Broadbent. United States Thomson Learning. Tanter R. (1990). The Totalitarian Ambition: Intelligence Organizations in the Indonesian State. State and Civil Society in Indonesia. A. Budiman. Clayton Centre of Southeast Asian Studies Monash University. 36 |
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