Multinationals and Unionism in Indonesia
This paper presents a critical analysis of the factors shaping the interaction between multinationals and trade unions in Indonesia, focusing on the recent period of democratization following the downfall of the Suharto regime. It has been suggested that union growth risks undermining Indonesia&...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Universitas Indonesia
2013-07-01
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| Series: | The South East Asian Journal of Management |
| Online Access: | http://journal.ui.ac.id/index.php/tseajm/article/view/1779 |
| _version_ | 1797968240336437248 |
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| author | Riani Rachmawati Alex de Ruyter |
| author_facet | Riani Rachmawati Alex de Ruyter |
| author_sort | Riani Rachmawati |
| collection | DOAJ |
| description | This paper presents a critical analysis of the factors shaping the interaction between multinationals and trade unions in Indonesia, focusing on the recent period of democratization following the downfall of the Suharto regime. It has been suggested that union growth risks undermining Indonesia’s competitive advantages (cheap labour) and could encourage the exit of multinationals to cheaper competitors. In order to test this proposition, two case studies were conducted: one in the automotive industry and the other in the banking industry.<br />The paper first provides an overview of multinational activity and FDI in Indonesia, and their interaction with a nascent union movement. This is followed by presenting the findings of interviews conducted at the multinational enterprises with managers and union officials; to provide empirical insights into the bargaining process. The final part of the paper provides a preliminary assessment of the impact of union behaviour on MNC profitability and competitiveness in Indonesia. In contrast to traditional views of unions as impeding MNC profitability and “encouraging” exit, the paper finds that unions and MNCs can engage in constructive partnerships, but that pressures and contradictions in the relationship remain. |
| first_indexed | 2024-04-11T02:42:38Z |
| format | Article |
| id | doaj.art-cb867258cf994d4db0f5e4fabfa35a3c |
| institution | Directory Open Access Journal |
| issn | 1978-1989 2355-6641 |
| language | English |
| last_indexed | 2024-04-11T02:42:38Z |
| publishDate | 2013-07-01 |
| publisher | Universitas Indonesia |
| record_format | Article |
| series | The South East Asian Journal of Management |
| spelling | doaj.art-cb867258cf994d4db0f5e4fabfa35a3c2023-01-02T18:45:20ZengUniversitas IndonesiaThe South East Asian Journal of Management1978-19892355-66412013-07-011110.21002/seam.v1i1.17791312Multinationals and Unionism in IndonesiaRiani Rachmawati0Alex de Ruyter1Universitas IndonesiaGlasgow School for Business and SocietyThis paper presents a critical analysis of the factors shaping the interaction between multinationals and trade unions in Indonesia, focusing on the recent period of democratization following the downfall of the Suharto regime. It has been suggested that union growth risks undermining Indonesia’s competitive advantages (cheap labour) and could encourage the exit of multinationals to cheaper competitors. In order to test this proposition, two case studies were conducted: one in the automotive industry and the other in the banking industry.<br />The paper first provides an overview of multinational activity and FDI in Indonesia, and their interaction with a nascent union movement. This is followed by presenting the findings of interviews conducted at the multinational enterprises with managers and union officials; to provide empirical insights into the bargaining process. The final part of the paper provides a preliminary assessment of the impact of union behaviour on MNC profitability and competitiveness in Indonesia. In contrast to traditional views of unions as impeding MNC profitability and “encouraging” exit, the paper finds that unions and MNCs can engage in constructive partnerships, but that pressures and contradictions in the relationship remain.http://journal.ui.ac.id/index.php/tseajm/article/view/1779 |
| spellingShingle | Riani Rachmawati Alex de Ruyter Multinationals and Unionism in Indonesia The South East Asian Journal of Management |
| title | Multinationals and Unionism in Indonesia |
| title_full | Multinationals and Unionism in Indonesia |
| title_fullStr | Multinationals and Unionism in Indonesia |
| title_full_unstemmed | Multinationals and Unionism in Indonesia |
| title_short | Multinationals and Unionism in Indonesia |
| title_sort | multinationals and unionism in indonesia |
| url | http://journal.ui.ac.id/index.php/tseajm/article/view/1779 |
| work_keys_str_mv | AT rianirachmawati multinationalsandunionisminindonesia AT alexderuyter multinationalsandunionisminindonesia |