Improvement of Strategic Negotiation on Collective Labor Negotiation Process at PT. Layar Berkembang Indonesia

Abstract

Collective Labor Agreement Negotiation process is a mandatory for employers and workers in Indonesia as stipulated under Labor Law No:13 Year 2003 and further regulated under Ministry of Manpower Regulation (PERMENAKER) No:28 Year 2014. Through this Collective Labor Agreement process, unions continue to fight for the intrinsic rights of worker’s welfare such as salary increase, better medical health facility, transport allowance, meal allowance, terms of employment, and safety policies, ways to balance work and family, and more. From the employers’ perfective, Collective Labor Agreement negotiation process is very crucial process as the ‘failed negotiation’ could lead to a strike and cessation of company production. The author conducted gap and data analysis by assessing the current process by referring to prevailing regulations. The author used SWOT analysis to identify the current weaknesses (internal factors) and un-structured negotiation strategy of PT. LAYAR BERKEMBANG Indonesia. External Analysis also being carried out by using PESTLE analysis to support the strategy improvement from different aspects and factors. To support the implementation of new Negotiation Framework, management of PT. LAYAR BERKEMBANG must take a series of actions and involve all leadership team in this improvement initiatives. HR Department must take lead in this process and align with other stakeholders for the implementation of this new framework so that the next Collective Labor Negotiation process is accountable and align with prevailing regulations in Indonesia.therefore author recommend this method compared to the current simple moving average method.