CASE STUDY NO:2
LABOUR UNREST AND THE HARI RAYA BONUS - THE PLIGHT OF THE INDONESIAN WORKERS
1. ... Its first 2 years of operation saw a smooth relationship between the management and the workers, with the company chalking remarkable performance with expanded product lines and increase in the number of workers from 6,000 to 10,000. ... Based on the performance, the company announced a reduced bonus of a half-month’s salary, which was against the workers’ request of at least one month salary bonus. The fact that Hari Raya was approaching did not help. The difference of opinion remained unresolved and the prolong conflict has resulted in incidences of violent strikes by the workers. ... The company was portrayed as not being sympathetic towards the workers plight by refusing to give higher bonus and offering higher wages. Despite clear public opinion support for the workers, the management has refused to budge from its earlier stand. In the midst of a rather violent strike, the management issued a strong ultimatum through the PA system to the workers to either stop the strike or lose their jobs.
The crisis reached its height when some 2,500 workers staged a protest at the Parliament House demanding intervention from the MPs and the government. ...
As a Human Resources Manager of the company for the last 6 months, Pak Joo Bong, a Korean was not completely ignorant of the workers demands. Though he seems to understand the workers problems, he has not been able to convince the management to agree to the workers’ demand. ... This was evident by the manner the management rejected the request of the workers. ...
As the timing of the year bonus payment was close to the Hari Raya festival, the biggest religious festival of the country, the expectations of the workers can be expected to be higher than if the bonus was to be paid at other time of the year. ...
In my opinion, the management could have taken the advantage out of the issue by seeing it as an opportunity to gain valuable goodwill and trust of his workers. The management could have solved the issue even without having to agree fully to the workers monetary demand, or setting a bad precedent. Any favorable response (not necessarily in monetary forms) that could relieve some burden of the families preparing for the festival would have been most welcomed by the workers. ...
A Korean Human Resource Manager, lacking proficiency of the local language and knowledge of the local culture could not be expected to appreciate this Hari Raya sensitivity, hence missing the “golden opportunity” to win the heart and trust of his workers. ... And this can be a costly affair to the company, maybe costing more than the cost of the additional half-month bonus they tried to save! ... Workers would not open up with “foreign” management when it comes to issues and concerns relating to “local peculiarity”. With everything Korean except for the 10,000 Indonesian workers, any initiatives by the company to instill sense of ownership amongst the patriotic workers would be difficult. ...
Banners and posters with displayed slogans such as “THR adalah kewajipan MORAL pengusaha” and “Pengusaha tidak pedulikan nasib pekerja”; staging of protest at the Parliament House and singing of patriotic songs exemplified workers negative sentiment and lack of trust toward their “foreign” management”. ...
In my opinion, the element of mistrust and prejudice between the management and workers, arising out of lack of local representation in the management, has amplified the “local workers welfare versus foreign businessmen” sentiment. ... The management would have viewed the bonus issue and decided differently if the HR manager has been an Indonesian who could relate local peculiarity issues better. ...
To assimilate well into the Indonesian patriotic society, other steps could be taken to “localize” the company.
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