ARGA RIZTAMA19009065

THE DILLEMA OF OUTSOURCED CONTRACT

WORKERS

Legal Aspect

Undang Undang Republik Indonesia Nomor 13 tahun 2003 tentang Ketenagakerjaan.

UMR Outsourcing

UMR

Is contained in Pasal 88 and Pasal 89

Pasal 88 and 89 defines the responsibility of the employer to compensate the workers with wages that

complies with the UMR

Upah Minimum Regional is the minimum allowed wage to be payed based on the minimum standard of living

Outsourcing

Is contained in Pasal 59, and Pasal 64-66

Pasal 59 states the definition of the PKWT or Contract Worker

Pasal 64-66 states that a company is allowed to do outsourcing as long as it meets the regulations

Study Case

Krakatau Steel

Largest Producer of Steel in Southeast

Asia

Krakatau Steel was established on August 31, 1970s as a result of Indonesian

Government Regulation No. 35 in the year 1970 regarding is equity establishment.

Labour Workforce of around 7000 people

Direct reduction plant, billet steel

plant, wire rod mill

Current State

There is a labour union called Serikat Buruh Krakatau

Steel

Outsourcing is used by the company to fulfill its

operational needs

PT Nur Sahara Pratama, Alfindo Banten Sukses Utama, Spektra Jasindo, ABN, Indo

Sarana Usaha, Saba, Marintara, Putri Banten, and PT CBI.

Problems

Unsatisfied workersEspecially outsourced

workers

Krakatau Steel sometimes dont fulfill their promises

Doing the same job as regular KS workers

Still compensation lacks

Pay form is also only “basic”

They think their job is undervalued

3 points of view regarding this situation

Each with its own interest

Workers Management Government

Its walfarejob undervalued

Outsourcing is neccessary to gain a

competitive advantage

Focus on economic growth

Conclusion and Suggestion

Implementation of a regulations is still

vague

Loose government

control

Outsourced Contract workers is

a dillema

A complete review and consensus by all of the 3 sides

Each side has its own interest

Krakatau Steel

THANK YOU!