TUC Aid improves livelihood prospects of hundreds of women in Aceh, Indonesia.

TUC Aid Tsunami Relief Programme

Indonesia

Project Report

by

Bandula Kothalawala

Acknowledgements

TUC Aid takes this opportunity to express its gratitude to the Australian People for Health, Education and Development Abroad (APHEDA) -Union Aid Abroad for the successful implementation of the Tsunami Relief Programme in Indonesia. It very much appreciates the contribution made by Lucy Rhydwen-Marett, Project Officer, Valentina Manurung, Programme Co-ordinator, and other staff members in the APHEDA Office in Banda Aceh to its success. It also wishes to thank the Acehnese trade unions, the Trade Union Care Centre (TUCC), the ILO Office in Jakarta and other partners for their unstinting support for, and collaboration in, the implementation, monitoring and evaluation of the Project.

ABREVIATIONS

ACILS American Centre for International Labour Solidarity

ACTU Australian Council of Trade Unions

AHWU Acehnese Health Workers' Union

APHEDA Australian People for Health, Education and Development Abroad

CITU Confederation of Indonesian Trade Unions

EI Education International

GAM Gerakan Acheh Merdeka

GUF Global Union Federations

ICFTU International Confederation of Free Trade Unions

ICMC International Catholic Migration Commission

IDR Indonesian Ruppiahs

ITUC International Trade Union Confederation

KSBSI Konfederasi Serikat Buruh Sejahtera Indonesia

LIF Leuser International Foundation

MSE Micro and Small Enterprises

NAD Nanggroe Aceh Darussalam

PGRI Persatuan Guru Republik Indonesia

PPNI Persatuan Perawat Nasional Indonesia

SPSI Serikat Pekerja Seluruh Indonesia

TUC Trades Union Congress

TUCC Trade Union Care Centre

WALHI Wahana Lingkungan Hidup Indonesia - Friends of the Earth Indonesia

TUC Aid

Tsunami Relief Programme in Indonesia

Introduction

The Republic of Indonesia, an archipelago consisting of some 17,500 islands scattered over either side of the Equator in Southeast Asia, is the fourth most populous country in the world. Java, Sumatra, Kalimantan (Indonesian part of Borneo), New Guinea (Indonesian part of Papua New Guinea) and Sulawesi are five of the larger islands forming the archipelago. Java, where Jakarta -capital of Indonesia, is situated, is one of the most densely populated islands in the world.

The country's population, estimated at 224m in 2006, is spread over some 12,000 islands. Indonesia is a lower middle-income country with a per capita GNI of USD 1,420[1] in 2006[2]. The economy registered an annual growth of 5.5% in 2006 while the rate of inflation dropped from 14.8% in 2005 to 13.6% in 2006. Life expectancy at birth was 67[3] years in 2006 while infant mortality was 30 per thousand in the same year. Adult literacy rates for males and females were 94% and 87% respectively in 2006.

Though not officially an Islamic state[4], Indonesia is by far the most populous Muslim nation in the world.

There is persistent concern over trade union rights in the Republic of Indonesia despite the ratification by the country of all eight core ILO Conventions. The prevalence of child labour, forced labour and discrimination[5] and the restrictions on the Freedom of Association and the Collective Bargaining and on the right to strike both in law and practice have been noted by the International Trade Union Confederation (ITUC) on several occasions[6]. Moreover, there are numerous shortcomings in the enforcement of existing laws and regulations. The ITUC has two affiliates from Indonesia -Confederation of Indonesian Trade Unions (KSPI/CITU) and Konfederasi Serikat Buruh Sejahtera Indonesia (KSBSI). 3.4m workers are unionised in Indonesia, representing some 4% of the total labour force. There are over 80 national trade unions and federations officially registered, and also many unions at local or enterprise levels. Until the fall of Suharto in 1999, public sector workers were members of associations (such as PGRI for teachers) affiliated to the ruling-party, and there was a single legal trade union federation, SPSI, also attached to Suharto's Golkar Party. Now there is a wide range of unions and federations, reflecting diverse ideological currents.

Earthquake and Tsunami Waves

Due to its location in a seismically active region, Indonesia has suffered many natural disasters[7] of considerable magnitude in the past. On 26 December 2004, a massive earthquake measuring 9.3 on the Richter scale with its epicentre in the Indian Ocean hit Indonesia, triggering Tsunami waves which swept the 800-km coastline of Aceh and parts of North Sumatra Province and some other outlying islands. The catastrophe caused some 173,900 deaths[8], massive damage to infrastructure, productive activity and the natural environment and immense suffering to survivors. It also destroyed the livelihood of some 1.8m people[9].

Aceh

Aceh is on the northern tip of the island of Sumatra. It has its own language (Bahasa Aceh, with some 3 million first-language speakers) and is endowed with its own distinctive culture, history and variety of Islam. It is very rich in natural resources, including marine, timber, agricultural and energy resources. For several decades until the earthquake and Tsunami, there was an armed struggle for independence led by the Gerakan Acheh Merdeka (GAM) which led to intense government repression. International media, NGOs and trade unions had long been excluded from Aceh. At the time of the Tsunami, the population of Aceh had already been traumatised by long years of war and repression. Protagonists on all sides of the independence struggle died in the waves, including Cut Nur, the main woman leader of the struggle, who drowned in prison. Aceh is now a special territory, officially known as Nanggroe Aceh Darussalam (NAD), with a capital city of Banda Aceh. It is administratively divided into 18 regencies and five cities.

Response from the international trade union movement

A preliminary assessment[10] carried out by the Global Union Federation -ICFTU Mission that visited Indonesia from 16 to 19 January 2005 in the immediate aftermath of the disaster reported substantial damage to public services, notably, education, health, communications and public utilities, to fisheries, transport, tourism and ancillary services and highlighted significant job losses in the sectors concerned. The GUF-ICFTU Mission also drew attention to the fact that a disproportionately large number of children had perished in the disaster. It identified four priority areas for possible trade union interventions. The Mission recommended trade union support for the re-establishment of livelihoods through vocational training, return to school for hundreds of thousands of children, reconstruction or repair of workers' homes and union offices and fair distribution of aid and the fight against the exploitation and violations of human and trade union rights in the reconstruction and rehabilitation phases.

In addition to ILO-led reconstruction efforts, there have been three international trade-union initiatives focused on reconstruction and the protection of labour rights in Aceh, seeking to coordinate and complement operations:

Education International (EI) initiative, located in the PGRI (teachers' association) building supports school rebuilding and vocational training, with assistance from Novib/Oxfam Netherlands, ITUC and some of the GUFs;

The Australian Council of Trade Unions (ACTU) established an APHEDA[11] office and team in Aceh soon after the Tsunami for health care, reconstruction, vocational training and trade union development, with additional support from the labour movements in Britain, Italy, Austria and Canada, and in emergency health care working alongside the International Union of Food Workers in Indonesia.

The Trade Union Care Centre (TUCC) was established by Indonesian local and national unions to provide emergency support, assist in reconstruction, and rebuild unions, with support of Unions Network International, and the labour movements of USA, Finland and Germany.

TUC Aid Involvement

In May 2005, the European Union and International Relations Department (EUIRD) of the TUC, in consultation with TUC Aid Trustees, called for project proposals from interested trade union partners in the region for consideration for funding, with a view to contributing to the long-term rehabilitation of the victims of the Tsunami waves in Indonesia. At their meeting in August 2005, TUC Aid Trustees approved a project proposal submitted by the Australian People for Health, Education and Development Abroad (APHEDA-Union Aid Abroad) - overseas aid agency of the Australian Council of Trade Unions (ACTU). The Trustees also agreed to consider for funding a project proposal from the Jakarta Office of the International Labour Organisation subject to further discussions on some aspects of the Proposal.

This Report on the TUC Aid Tsunami Relief Programme in Indonesia sets out its objectives, looks at trade union and vocational training activities carried out in Aceh and assesses its contribution to the long-term rehabilitation of the victims of the disaster. A substantial part of the material has been extracted from Progress Reports and supplemented with the information gathered from a series of informal conversations with beneficiaries and representatives of partner organisations in Banda Aceh and Sigli during the visits in February 2008. It also draws on the discussions with Lucy Rhydwen-Marett, Project Officer, and the staff of the APHEDA Office in Banda Aceh and with some Acehnese trade union leaders.

Project I

The Trade Union Rehabilitation through Education & Training Project proposed by the ILO Jakarta Office sought to contribute to the restoration of services and operations of trade unions in Aceh and affected areas of Northern Sumatra through the development and/or support of independent and representative trade unions and was part of a wider ILO initiative[12] designed to create employment, generate income, protect and promote rights and entitlements of workers in Indonesia, Sri Lanka, India and Thailand.

Project activities in Indonesia funded by TUC Aid consisted of

• Education and training programmes for workplace trade union representatives and regular members, enabling them to deliver training in Aceh and North Sumatra and using their own educators trained under the Project;
• Organising of unorganised workers - programme proposed to build on existing strengths of the trade unions, leaving flexibility for individual unions to adapt and develop their own approaches within the general project framework. The programme envisaged knowledge, information and experience-sharing that could contribute to the development of more effective strategies and best practices[13]

Project II

The Trade Union Development and Livelihood Security Project proposed by APHEDA was aimed at facilitating the development of independent and democratic trade unions in Aceh and at enhancing economic and social wellbeing of union members affected by the Tsunami. It was part of a larger reconstruction, education, environment and health program supported by Union Aid Abroad - APHEDA in various parts of Aceh, registered with the Agency for Rehabilitation and Reconstruction in Aceh and Nias[14]. APHEDA, as agreed at the outset, made a significant financial contribution to the Project in meeting the cost of administration, technical expertise and monitoring.

The objectives of the Project were as follows;

• Improvement of capacity of trade unions in Aceh to form strong trade union institutions and structures; and,
• Provision of livelihood security for union members and communities affected by the Tsunami.

Main activities consisted of

• Organisation of training for trade union leaders and officials, including training in union administration, negotiation skills, organisational skills etc, and
• Organisation of vocational skills training for people affected by the Tsunami.

Vocational Training

APHEDA began planning vocational training in partnership with the branch of the national KSBSI confederation that had been strong in the area near the Exxon Refinery near Lhokseumawe. The need for the training of trainers was recognized at an early stage of the implementation of Project, as there were only a handful of qualified trade union officials capable of imparting the necessary vocational skills. Ms Kuniawati, an Acehnese trainer with vocational training experience, was recruited and given further training under Lynne Butler, Australian technical expert with experience in vocational curricular development. Ms Butler, especially assigned for the Project for three months, was responsible for mentoring, conducting training of trainers (ToT) and assisting the Acehnese trainers in developing curricula and training material for the courses. She speaks Bahasa Indonesia, and has also been involved in ILO training programmes in Aceh. Ms Butler mentored and trained two new Acehnese APHEDA staff, Wilda and Rhauda, as vocational training officers after Ms Kurniawati resigned. In total, 60 participants became trainers as a result of the training of trainers programme conducted under the Project.

Training in Sewing and Embroidery

Thirteen women trainers in tailoring and embroidery received advanced training so that they could provide training for, and impart their knowledge and skills to, others. A further 12 trainers were given similar training, which enabled them to train others in screen-printing. In the first three months, courses were held in five different locations, but mainly, in Lhokseumawe(274km from Banda Aceh) and Sigli (122km from Banda Aceh), to provide training for a total 116 workers. 96 women took part in a 6-week tailoring and embroidery training course while 20 men received skills training in screen-printing. The women widowed by the Tsunami, those whose husbands had lost their livelihoods and those who were heads of households were given priority in the selection for training. 78 women also received training in sewing machine maintenance and repair.

Vocational Training Courses

Summary

Type of Training	Male	Female	Total	Location	Year
Training of trainer (ToT) methodology	3	13	16	Sigli, Banda Aceh	2005, 2006
Small Business ToT	3	10	13	Sigli, Lhokseumawe	2006
Microfinance ToT	0	12	12	Lhoksemawe	2006
Advanced Sewing and Design TOT	0	19	19	Sigli, Lhokseumawe	2007
Basic Sewing and Embroidery	0	96	96	Sigli, Lhokseumawe	2005
Screen Printing	20	0	20	Lhokseumawe	2006
Sewing Machine Maintenance and Repair Training	0	78	78	Sigli, Lhokseumawe	2006
Choosing a Business Training	0	25	25	Sigli, Batee	2006
Small Business and Microfinance Training (combined)	0	25	25	Layeun	2006
Small Business Training	0	86	86	Sigli, Batee, Lhokseumawe	2006, 2007
Microfinance Training	0	85	85	Sigli, Batee, Lhokseumawe	2006, 2007
Fish Processing and Diversification training	0	59	59	Lham Lhom, Sigli, Batee	2006, 2007
Advanced Sewing and Design Training	0	67	67	Sigli, Lhokseumawe	2007
Total	26	575	601

Source: Progress Reports

Following the initial training, the women were provided with sewing machines (8) and work was shared amongst them. They took turns in using machines and hand-stitching. The basic training provided at the initial stage has now been supplemented with advanced training in embroidery and design. 35 sewing machines, 6 hemming machines and 5 embroidery machines were provided for the use of the trainees. Some of the trainees have opted to make ceremonial umbrellas, for which there is growing demand in Aceh, and have been able to make sufficient profits from sales to support their families[15].

8 sewing collectives in Sigli are in operation, carrying on their business activities. The groups, each of which has elected a co-ordinator, are formed from within the areas that the members come from for ease of transport and child care. APHEDA, in agreement with KSBSI, have provided the groups concerned with grants rather than loans, as it was felt that the repayments of loans would add to their financial pressures. This decision has made it possible for the groups to successfully carry out their business plans. The start-up capital for the groups largely came in the form of goods and equipment (e.g. sewing machines, cloth etc) rather than cash. The Project has also arranged for advice and support, when necessary. The APHEDA Training Assistant ensures that any gaps in the trainees' knowledge and skills are correctly identified during monitoring visits and that appropriate and adequate action is taken to fill them without delay. Some of the trainees have not been able to set themselves up in business, as they have not yet received sewing machines. Sewing groups continue to produce clothes, sheets, and jilbab(head scarves), and have started to make profits from sales. One group is said to be inactive and the co-ordinator has plans to assist them to overcome the current difficulties.

Fish Processing

The training in fish processing techniques provided in collaboration with SUPM Ladong[16] - a training institute specialised in fisheries and fish processing technology - has been a success. 18 women from a number of villages - Teupinjeu, Aron and Pulo Bungong - received training, organised in Aron, Batee. The participants were given training in fish processing including the preparation of prawn crackers, shredded dried fish, dried seasoned fish, fish powder and bandeng presto - a kind of dried fish. A total of 59 women received training in fish processing techniques.

The three fish processing groups which submitted their business proposals have received start-up capital from Union Aid Abroad - APHEDA. The groups concerned produce prawn crackers and dried shredded fish, which they sell at local markets, bus stations, noodle stalls and kiosks.

Microfinance

There is growing interest in microfinance[17] as an effective way of supporting the poor and the vulnerable, with no access to traditional banking, in their efforts to rebuild their lives. The Asian Development Bank[18] and a number of development agencies have recognized the importance of microfinance in poverty-reduction strategies in Asia.

3 men and 10 women were given training to become trainers in small business while 12 women received training in microfinance under the ToT Programme. They, in turn, had trained 136 women in Choosing a Business and Microfinance and Small Businesses. The training in microfinance provided under the Project has equipped the beneficiaries with the necessary skills and knowledge and should stand them in good stead when managing businesses set up with micro-credit.

Following the Tsunami, a number of micro and small enterprises (MSEs) have sprung up in Aceh and North Sumatra with the support of NGOs engaged in long-term rehabilitation. Many of them have been started by women entrepreneurs as a way of supplementing their family income. Women often have to struggle to combine their business responsibilities with those towards their families, due to the lack of childcare facilities. There is need for advice and support for these women entrepreneurs who have ventured into small home-based businesses[19]as there are no support structures for them. Moreover, it appears that there have not been sufficient initiatives to promote their products, although there is recognition of the need to find customers.[20]

Project Management Training

Union Aid Abroad - APHEDA continues to collaborate with KSBSI in delivering training on project management including monitoring and evaluation of outcomes. The trainees are also involved in evaluating the training through a simple questionnaire on the nature, quality, methodology, trainers' knowledge, suitability of equipment, future goals, and additional training needs. A total of 16 officials received training in Methodology under the ToT Programme.

Trade Unions in Aceh

It is hard to obtain reliable data on the labour force in Aceh. According to the Trade Union Care Centre, the labour force is estimated at 1, 538,500. It is just as hard to find any reliable information on the unionisation in the Province, although it is estimated to be around 3.8%[21].[22] While unionisation is considered to be high in some sectors such as education, it is very low in many other sectors.

The Table below summarises data from official sources[23].

Union Name	Sector	Membership
KSPSI[24] NAD	Plantation and Transportation	26,141
PPNI	Nurses	9,971
SPNI	General	4,803
KSBSI[25]	General	4,071
SBA Aceh Trade Union[26]	General	3,183
SP BUN	Plantation	2,225
KSPI[27] NAD	Service Industry	2,046
Total		52,440

Nevertheless, data compiled by unions in the Province put the total membership at 64,808[28].

Training Programmes

The Trade Union Training Programme began with the recruitment of two trainers - Mansyur Ryansyah, a qualified trade union trainer from the Labour Working Group Training Centre and James Rankin, an Indonesian-speaking trade union trainer from the Australian Education Union. Mr Rankin joined the Project as a technical adviser on a 3-month assignment funded by APHEDA. Yayan Komara, an experienced trade union trainer also from the Labour Working Group in Bandung, also joined the trade union team and was responsible for facilitating and organising training during the project. A mapping of trade unions and federations operating in Aceh was undertaken at an early stage of the implementation of the Project. The exercise also included the assessment of relative strengths of unions, membership levels[29], awareness levels of their members and their capacity to train, organise, recruit members and negotiate collective agreements. The data collected through the mapping exercise was of tremendous use in the design and organisation of subsequent trade union courses. Moreover, the Workshop on the Future of Trade Unions in Aceh organised by APHEDA in January 2006 provided the opportunity to further identify the needs and priorities of the local unions. It was attended by 63 participants including representatives from the ILO, Global Union Federations working in Aceh, ACTU, ACILS and the Department of Manpower in Indonesia. The Workshop concluded that the recruitment of new members was vital to the development of local trade unions and that trade union training and education should be given priority.

Due to the low level of trade union awareness, even among trade union members, a number of basic introductory courses - Introduction to Trade Unionism - had been organized in Aceh. 47 male and 82 female union members from two Federations attended them. Moreover, it became clear that the shortage of competent union organisers/activists was a serious impediment to any meaningful initiative to re-build the trade union movement in Aceh. It was therefore decided to select some young union activists to be trained, mentored and developed into union organisers / recruiters for Acehnese unions.

Some 900 Acehnese trade union members and potential members had taken part in the training programme by the end of 2007. A third of them - some 300 - were women. 15 facilitators, having completed all 6 training modules, too, graduated in late 2007 and are committed to working within their unions to promote trade unionism in Aceh.

Basic Trade Union Training Courses

Summary

Date	Course	Location	No of Participants			Participating Unions
			Male	Female	Total
18 - 19 July 2006	Basic Trade Unionism	Lhokseumawe	17	13	30	KSBSI
29 - 30 July 2006	Basic Trade Unionism	Banda Aceh	13	9	22	KSPSI - transport, KSPI, KSBSI, SPPA*)
12 - 14 Aug 2006	Basic Trade Unionism	Meulaboh, West Aceh	0	30	30	KSPSI - transport)
9 - 10 Sept 2006	Basic Trade Unionism	Takengon, Central Aceh	17	13	30	SPKA**)

Source: Progress Reports

Trade Union Training Courses[30]

Summary

Date	Course	Location	No of Participants			Participating Unions
			Male	Female	Total
26 - 27 August 2006	Union Administration	Banda Aceh	4	8	12	3 Confederations and 2 unions (SPPA, SPKA)
16 - 17 Sept 2006	Collective Bargaining Skills	Banda Aceh	12	8	20	3 Confederations and 2 unions (SPPA, SPKA)
30 Sept - 1 Oct 2006	Gender in Trade Unions				32	3 Confederations and 4 unions (SPPA, SPKA, Indonesia Post Worker Union, SPSA**
April-July 2006 (First batch) August 2006 (Second Batch)	Mentoring for organisers	Banda Aceh			15	KSBSI - informal, KSPSI - transport, SPPA and KSPI - insurance.

Source: Progress Reports

The Indonesian local union Training advisors, Yayan Komara and Mansyur Ryansyah, also conducted training for 20 regional representatives (Transport) and 42 members of the Indonesian National Nurses Association (PPNI).

Monthly meetings of trade unions in Aceh attended by leaders of all three union confederations (KSPSI, KSBSI and KSPI) have been held to discuss criteria for forming the Trade Union Forum and processes for regulating it. Activities aimed at enhancing the capacity of unions to organise are continuing under the guidance of Yayan Komara.

Impact of Trade Union Training

While it is premature to gauge the impact of the training programme, it is worth mentioning a few significant developments. A new union - Acehnese Health Workers' Union[31] (SPKA) has been formed independently of the Indonesian Nurses' Association that functions as a national body. Agnes Stanislaus-Large, a Malaysian-born official, from the Australian Nurses' Federation in Australia worked closely with SPKA and assisted them in the development of a plan for organising the sector. The new Union, though independent of the PPNI, is not seen as a breakaway union and enjoys good relations with the Nurses' Association.

The progress made on the formation of a trade union for workers in non-governmental organisations was a significant outcome of the Project. Workers in the NGO sector, so far non-unionized, are subjected to obscure labour laws and standards governing the NGO sector. 33 people representing seven NGOs and international NGOs (INGOs) have agreed in principle on the formation of a trade union for NGO staff. A working group of representatives of the 7 NGOs, which included Trade Union Care Centre, Mercy Corps, WALHI[32], Helen Keller International, the International Catholic Migration Commission (ICMC), Leuser International Foundation (LIF), and Union Aid Abroad - APHEDA, have agreed to meet on a regular basis to explore the feasibility of forming a union for NGO staff.

An evaluation of the work carried out by the first group of 7 organisers conducted in September 2007 revealed positive impact.

• Membership has increased in some unions[33].
• The number of fee-paying members has risen.
• Members' awareness of trade union values and interests has increased.

It was also found that there had been improvements in organising skills and strategies among the organisers trained under the Project. In addition, project activities have led to heightened interest in, and understanding of, Indonesian labour laws and industrial relations systems. Moreover, the Project has succeeded in bringing together trade unions in Aceh for the first time in nearly 30 years and in re-kindling interest in trade union action in the defence of workers' rights.

Labour Law Reforms

There is a perceptible desire among the Acehnese trade unions to continue close collaboration, notably, in the pursuit of labour law reforms[34] in the Province. In Indonesia, many areas of government and law, and in particular, industrial relations, have recently been decentralised to provincial and even district levels. As a special territory, with newly elected leaders from the independence movement, Aceh is even more autonomous than other areas in formulating labour law and labour standards. Following is a summary of the salient features of the proposed reforms.

• Minimum Wage

Due to the international relief effort, the cost of living in Aceh is said to be very high by Indonesian standards. Reforms aim at adjusting the minimum wage rates in line with family circumstances, especially in line with the number of children in the family. The current (2008) minimum wage[35] is IDR 1,000,000 per month (Approximately, £55.00[36]). Trade unionists point out that, although the minimum wage has risen from IDR 550,000 in 2004 to IDR 1,000,000 in 2008, there has been only a slight increase in real terms[37].

• Outsourcing

Reforms seek to limit outsourcing to catering and cleaning services. Outsourcing has long been a thorny issue in Indonesia. Section 59 of the Manpower Act provides for contract labour if it is for a short duration. However, according to an ITUC Report, employers often disregard this provision and resort to contract labour[38] on a permanent basis. Unions point out that workers on contracts move from company to company or from region to region and that it has proven difficult to organise them.

• Disabled Workers

Reforms stipulate that employers reserve 1% of all employment opportunities for workers with disabilities. According to Handicap International[39], the proposal is not different from the provisions in the current Indonesian labour law relating to workers with disabilities. When asked as to why a rather low percentage was chosen, unions replied that the organisations representing the interests of people with disabilities were satisfied with the current provisions. In any event, it is hard to see any immediate impact on the plight of the people with disabilities in Aceh, as the facilities for them at workplace seem to be very limited. Although a large number of new public buildings have been constructed and are under construction under the reconstruction programme following the Tsunami, there is little evidence that any meaningful effort has been made to render them accessible, for instance, to wheelchair users.

• Severance Pay

Labour reforms seek substantial increases in the severance pay for workers made redundant. Under the current provisions[40], the employer has to pay the dismissed worker severance pay and/or a sum of money as a reward for the services rendered during his/her employment.

• Sharia Law

The introduction of the Sharia Law into the Labour Legislation in Aceh is by far the most controversial aspect of the proposed reforms. Although it has not been possible to ascertain the contents of the proposed changes[41] in precise terms, it is evident that the incorporation of the Sharia Law is the overriding concern of the unions calling for labour law reforms. There is provision to restrict women's right to work. If implemented, the law would require a married woman to obtain the permission from her husband before she was able to go to work. An unmarried woman would need the authorisation from her parents. There is also a possibility that separate facilities for men and women would be made compulsory at workplaces under the proposed legislation. Moreover, the proposed changes seek the application of the Sharia Law to cases of infringements of the labour legislation, although the relevant texts are lacking in detail. It is important to point out that the implementation of the traditional Islamic Law was part of the Memorandum of Understanding signed between the Government of Indonesia and the Free Aceh Movement known as the GAM (Gerakan Aceh Merdeka) on 15 August 2005[42][43].

There is no indication of any significant opposition to the proposed legislation, although employers are said to have expressed serious concern over its impact on foreign investment.

Trade union officials have also deepened their knowledge and understanding of the Neo-liberal Globalisation, trade and the WTO, debt crisis and the role of international financial institutions through the training workshops organised under the Project.

Challenges

While there has been some discernible progress in organising and recruitment of members and in the initiatives to rebuild and strengthen trade union structures, institutions and networks in Aceh after 30 years of inactivity, Acehnese unions remain confronted with serious challenges.

Many trade unionists complain that union members are reluctant to pay membership fees, although they are keen on the benefits of union membership. In fact, only a few unions claim to have overcome the difficulty of collection of fees satisfactorily[44]. It does appear that union members have not readily accepted the concept of fee-paying union membership and that they often fail to differentiate between a trade union and a non-governmental organisation.

The mentoring programme was a failure and had to be abandoned. Five of the trainees were unable to recruit any new members following their training - failure often attributed to the nature of the industries in which they were to have recruited members. Reconstruction has been the main driver of economic growth in the Province since January 2005. On the one hand, organising workers in the construction sector has been difficult due to the short-term nature of employment opportunities in it. On the other, outsourcing has become a considerable impediment to recruitment in the growing services sector. Nevertheless, it seems that the poor judgement exercised in the selection of candidates for the mentoring programme contributed in no small measure to the failure of the Programme. Despite the failure of the initial mentoring project, 15 facilitators graduated from facilitators training in 2007. During the training they completed 6 training modules, and practised delivering training and recruiting new members. These facilitators are now working within the education departments of their unions.

The informal sector has been expanding rapidly in Indonesia. According to union sources[45], 65% of workers are in the informal sector in Indonesia. The unions in Aceh have made some progress in organising workers and claim to have recruited some 9,000 workers in the informal sector. It is evident that the organisation of the workers in the informal sector is critical to the development of the Acehnese trade union movement and that the provincial unions need the technical expertise, advice and support in this regard from trade union organisations that have made significant inroads into the informal sector.

The Acehnese trade unionists[46] were quite persistent in their requests for further financial support from TUC Aid to rebuild the trade union structures and organise training and education activities in Aceh, arguing that a special case should be made due to exceptional circumstances. They requested further financial assistance, in particular, to build a trade union centre in the city of Banda Aceh which they would use for organising trade union events. The Trade Union Care Centre in Banda Aceh seems to be catering to their needs, to some extent, and it was not entirely clear why the building of a trade union centre was considered a priority at this stage.

Labour law reforms over which there seems to be consensus among the Acehnese unions are, in many respects, a commendable initiative. However, the proposed introduction of the Sharia Law into labour legislation is bound to cause controversy and unlikely to win support from the international trade union movement. Indonesia ratified ILO Convention No 100 on Equal Remuneration in 1958 and the ILO Convention No 111 on Discrimination (Employment and Occupation) in 1999. Some of the proposed changes may not be consistent with the rights and entitlements enshrined in the ILO Conventions concerned and/or go against their spirit[47]. Moreover, there is already deep and widespread concern in Indonesia over the weak enforcement of the existing laws and regulations on discrimination, notably, against women workers[48]. The introduction of the Sharia Law, in relation, inter alia, to women's right to work, will no doubt worsen the plight of women workers already at a disadvantage in many respects.

Conclusions and recommendations

Vocational Training Programme

The vocational training programme has, on the whole, been a success. The majority of the trainees - mostly women - have benefited considerably from it and been able to supplement their family income with the profits from the sale of their products.

There is evidence that the equipment and tools provided under the Training Programme have been put to good use by the beneficiaries, that advanced training has further honed their skills and boosted their confidence and that the training in repair and in maintenance of equipment such as sewing machines has been of great benefit to the trainees.

The training in microfinance and small businesses has equipped the beneficiaries with the knowledge and skills essential to start small businesses and contribute to the expanding local economy while supplementing family income.

Recommendations

Some of the trainees, especially those who received training in sewing and embroidery and fish processing are in need of further material support in terms of equipment - sewing and embroidery machines and other tools - to set themselves up in business. Moreover, some of those who received training in micro credit and small business may need financial assistance to set up small businesses.

It is therefore proposed that material support be provided to those trainees in need of equipment and tools and that financial support be made available to those who have not yet been able to start businesses due to the lack of capital, in consultation with, and through, APHEDA before it closes down its operations in Aceh.

Trade Union Training

The training programme, despite some initial difficulties, has been instrumental in bringing together all trade unions across Aceh which had been inactive for over thirty years due to the conflict. It has led to a resurgence of interest in trade union activities and values, which, if sustained, should pave the way for the consolidation of the Acehnese trade union movement and for the protection of workers' rights in the territory.

The training programme has been comprehensive in its coverage of identified needs and conducted by competent trade union educators with considerable experience in the field. The unions need to put to good use both human and material resources at their disposal to develop effective long-term strategies to organize workers in the formal and informal sectors. As the relative importance of the construction sector in the economy declines in the coming years, other sectors - transport, banking, telecommunications and manufacturing (non-oil and gas) - are likely to grow and create permanent employment opportunities, some of which may be 'traditional' with considerable scope for recruitment. Workers in the rapidly expanding service sectors, notably, hotels and restaurants, need to be approached with a clear message on the advantages of union membership.

As pointed out earlier, trade unions in Aceh are faced with major challenges. Despite the significant strides made in the recruitment and retention of members in the past two years, the membership levels still remain low. The collection of fees continues to pose a challenge to all but a few unions, for union members have yet to get accustomed to the concept of fee-paying membership. The Acehnese unions need to approach their colleagues in other provinces in Indonesia to share expertise and experience and learn from one another in this regard. Moreover, they need to explore possibilities of exchange of experience and expertise with unions in neighbouring countries like Malaysia.

Established in 1988 by the TUC General Council with a view to promoting poverty relief and advancement of education in developing countries, TUC Aid is the development arm of the British trade union movement. It has, from its inception, supported trade union initiatives consistent with its aims and objectives including the elimination of discrimination against women and promotion of their rights. The proposed incorporation of the Sharia law in the labour code raises serious questions on the commitment of the Acehnese unions to the ideals the movement has striven hard to defend for over a century. Regretfully, TUC Aid is not in a position to support this particular initiative, as it clearly conflicts with our stance on gender equality.

There is no indication that the Acehnese unions have sought or obtained any technical advice on the proposed labour law reforms from the ILO or any other appropriate authoritative source. It remains to be seen whether the proposed reforms are consistent with the ILO Conventions and other international instruments ratified by Indonesia.

ANNEXE

INTERNATIONAL LABOUR ORGANIZATION (ILO)

MULTI-BILATERAL PROGRAMME OF TECHNICAL COOPERATION

FINAL REPORT

Project Number : INS/05/M15/TUC

Project Title: Indonesia Tsunami Response: Trade Union Rehabilitation through Education & Training

Period Covered: 26 January 2006 - 31 March 2007

Total Budget: USD 86,667

Starting Date: 26 January 2006

End Date: 31 March 2007

Implemented by: ILO Jakarta Office

Donor: British Trade Union Congress (TUC)

Introduction

The TUC Project on Trade Union Rehabilitation Education & Training seeks to contribute to restoring the services and operations of trade unions in Aceh and affected areas of North Sumatra, through the development and/or support of independent and representative trade unions.

The Project envisages trade union recovery and rehabilitation through the use of education and training in two separate, but simultaneous programmes:

(i) Education and training programmes, for workplace trade union representatives and regular members - the programme will aim to build the capacity of unions in Aceh and North Sumatra to themselves, deliver similar training, using their own educators, trained under the project; and

(ii) The organizing of unorganized workers - the programme proposes to build on existing strengths of the trade unions, leaving flexibility for individual unions to adopt and develop their own approaches within the general project framework. The programme envisages knowledge, information and experience-sharing, that can contribute to the development of more effective strategies and best practices that the Aceh and North Sumatra trade unions can refer to when organizing unorganized workers.

Both programmes were implemented as an integral part of the ILO Aceh Programme, which consisted of work components covering from local economic recovery/development, enterprise development and microfinance services, employment intensive investment planning and practices in the road sector, prevention of child labour, vocational training and employment services.

The TUC project has been an invaluable contribution not only in strengthening Aceh trade unions' organizations and services but also in making possible linking trade unions concerns into the larger reconstruction and development of Aceh.

Work done

Trade union coordination unit in the ILO Aceh Programme:

Support from the TUC Project made possible a hiring of a designated staff to be responsible for trade union affairs. The coordinator had extensive experiences with trade unions at the national level and in Aceh. His day to day work involved liaison with trade union representatives in Aceh; addressing their particular concerns with other trade unions and with regard to the overall reconstruction activities implemented in Aceh by the ILO; organized activities that have been agreed upon with the PAC; and coordinated trade unions activities with other ILO units.

Setting up the Project Advisory Committee:

The implementation of this Project and other trade union activities in Aceh was under the counsel and agreement framework with the Project Advisory Committee (PAC). The PAC consisted of representatives from trade unions in Aceh and the ILO trade union coordinator. The initial meeting was held at the onset of the project to decide on project implementation strategy. Thereafter, periodic meetings were held on a need-based basis.

It was agreed with the PAC that the project would pursue an institutional capacity building strategy which implemented a series of training to union leaders and educators/trainers that were previously trained under the ILO ACTRAV Tsunami Quick Response Programme. Under the TUC project a Training of Trainers would be held. The TOT participants would later go on to organize own training for their respective unions. The ILO would monitor the following:

reception that unions received at the community level;

programme and development of the union educator/trainer;

progress and development of the individual union education and training programme

Trade Union Education Training Programme:

Nineteen training sessions were organized. Four trade unions were involved. They were: the F-SPTI, K-SPSI, K-SBSI, F-SPPP, and SBA. The latter is a newly established Aceh Labour Union. The training series saw a total 644 union members attending, 239 being women. One special session was on equal opportunity.

The training started first a training of trainers led by ILO workers' specialist. This was dedicated to international labour standards. The rest of the training in the series utilized the trade union basic training course materials (BATRA). Each lasted 2-3 days. Topics covered included: what a trade union is; its roles and function; union formation; and dissolution under Indonesia's laws; workers' rights under Indonesia laws in light of international labour standards; freedom of association and collective bargaining; and discrimination in the workplace/equal employment opportunities.

Organizing the Unorganized:

Trade unions participating in the programme involved non-members to the training they organized. This was approved by the PAC, which saw this strategy as a means for membership drive. Participating unions saw increased membership. At the end of the project it was observed that:

FSPTI-KSPSI, it has resulted in an increase in union membership - from zero to twenty, in a sub-district called Kucatane-Aceh Tenggara, Meulaboh-Aceh Barat, Langsa/Aceh Timur, Aceh Singkil and Aceh Tamiang. The entire members are informal sectors.

F-SPPP has resulted increased workplace/plan level members in district Aceh Tamiang. The entire members are formal sectors (Oil palm plantation and processing).

K-SBSI even they are split it became two unions (K-SBSI and SBA) but their memberships still increased at all district consisted: Banda Aceh, Sigli, Lhokseumawe/Aceh Utara, Aceh Timur (Kuta Binjei, Peurlak, Langsa), Aceh Tamiang. The entire members are informal sectors.

Impact assessment

Effectiveness:

The Project was implemented in accordance with the work plan originally agreed upon with the Project Advisory Committee. The Project coordinator was instrumental in the implementation. He coordinated all activities on behalf of the unions so as to ensure transparency as well as timely conduct of the planned activities. This implementation strategy was proven effective in so far as delivery of the project work plan.

However, the workload on the Project Coordinator could not be understated. The Project's geographical coverage is both Aceh and Nias. Unions are active in the southern part of the province which is about 10 hour-drive from Banda Aceh where the ILO Office is located. In Nias, unions are also active and enthusiastic. But it is also another island away. Travel time, organizing activities, and taking care of activities reports and administrative arrangement were the order of the coordinator's everyday schedule.

Relevance:

The Project's emphasis on basic education on unions' roles and functions is of high importance to the development of Aceh. Aceh, coming out from a three-decade long of political conflict and recuperating from a series of natural disasters, is not attuned to democratic principles. There is a prevailing high distrust of the authorities and of working together. Yet, development and economic growth will demand a populace and work force that are fluent in democratic principles. Trade union education delivers such a basic principle. The project approach of creating first trainers and later support to the trainers in their conduct of activities is crucial.

It is also important to note the participating unions' interest to expand union education to non-members. This helps sensitize communities to basic organizing principles. They may not be joining trade unions or organized own organizations. They have been exposed to some basic principles crucial to Aceh's successful development.

The project was implemented along side other ILO initiatives. This enabled union representatives to participate in the following activities:

Tripartite consultation and socialization of 'Guidelines: 10 Priorities of Employers in the Reconstruction of ACEH & NIAS" (February - March 2006)

Training on occupational safety and health in the construction sector

Formulation and finalization of the Women Workers' Rights Guidelines for Aceh (November - December 2007)

Discussion on the formulation a provincial code on employment (January - March 2006)

Union action and contribution to the prevention of worst forms of child labour

Industrial relations in Aceh

Through these activities, unions interacted and engaged in dialogue with employers' organizations and provincial labour office. There is a high degree of collaborative spirit among the tripartite organizations in Aceh. However, due to the limited institutional resources and expertise each organization had, fruitful collaboration is yet to commence.

Sustainability of results:

The Basic Training for Trade Unions course outlines and materials that were developed and piloted through the project are useful for union education not only in Aceh and Nias but also in Indonesia as a whole.

Union educators in Aceh have honed their training skills and knowledge through the course of the project implementation. While formal training sessions organized by union own resources may be unlikely, the knowledge they have gained can be used in their information training and work.

The training programme under this project has also prepared Aceh union leaders, hitherto isolated from national activities, to undertake and participate in union activities and benefit from capacity building organized by national and international organizations. For example, trade unions from Aceh participated in the training workshop on freedom of association and collective bargaining organized by the ILO and the Turin Center in July.

Efficiency:

The implementation of the project was guided by the vision of trade unions in Aceh as well as ILO's technical expertise. Day to day project management was under the responsibility of project coordinator who also linked the project work to ILO's larger programme on workers' activities at the national level. ILO specialist on workers' activities in ILO Subregional Office in Manila and Workers' Activities Coordinator in Jakarta provided supervision and technical inputs to ensure effective implementation of the project.

Problems/constraints

While the Project completed its planned activities and gave valuable contribution to the reconstruction of Aceh and Nias, trade unions in Aceh will need further development. The issues raised below can only be tackled through a larger programme and over the course of time, provided that Aceh peace remains stabilized.

(a) Overall, trade unions in Aceh have extremely low institutional capacity. The current low union density is a result of decline in industrial production in the east coast of the province and the general dominance of the informal sector.

(b) Officials of the provincial and district labor offices have limited or no knowledge about Industrial Relation and no concerns for labour unionizing.

(c) Union leaders always expecting assistance/aids from out side their structure like ILO and other international organization/NGO to strengthening their union, on the other hands lack of communication with their head quarter also become their obstacle.

(d) Notification and registration of trade unions remains problematic and constrained union activities. Trade unions do not have sufficient capacity and resources to fulfill the requirements of local government. As a result, their organizing remains informal.

The ILO country programme will continue to engage trade unions from Aceh in its country programme, when feasible. This approach can provide only a partial solution to the overall problematic context of union operations in Aceh. A focused training programme for Aceh-based unions would be useful. But most important, tripartite organizations, particularly local government and employers' organizations would need to have stronger institutional capacity to effect an enabling environment for social dialogues and democratic, good governance of the labour market.

Lessons learned and follow-up actions

Under the Education and Training Programme, the project is working with the unions on strengthening their institutional capacity in areas of leadership, programming, and outreach - to members and non-members. This is outside the ambit of the project, but it is critical to the successful delivery of the project outcomes and objectives. In this regard, the project is encouraging the linking-up and networking of the Aceh unions with their national centres and the global unions - for further moral and technical support.

Follow-up actions and lessons learned

Under the Education and Training Programme, the project is working with the unions on strengthening their institutional capacity in areas of leadership, programming, and outreach - to members and non-members. This is outside the ambit of the project, but it is critical to the successful delivery of the project outcomes and objectives. In this regard, the project is encouraging the linking-up and networking of the Aceh unions with their national centres and the global unions - for further moral and technical support.

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[1] The per capita GNI for East Asia and Pacific was USD 1,863 for the same year.

[2] Data in this paragraph were extracted from Indonesia at a Glance published by the World Bank, 10/11/2007.

[3] Life Expectancy for East Asia and Pacific was 71 years in 2007.

[4] 86% of the people are Muslim; there are significant Christian, Buddhist and Hindu minorities.

[5] See Observations in the Report of the Committee of Experts on the Application of Conventions and Recommendations, 2007, Para 1

[6] Internationally Recognized Core Labour Standards in Indonesia, Report for the WTO General Council Review of the Trade Policies in Indonesia, ITUC, June 2007.

[7] One of the worst natural disasters to hit Indonesia was the eruption of Krakatoa in 1883.

[8] According to the Ministry of Health estimate published on 24 January 2005. The previous estimates provided by the Ministry of Social Services were considerably lower.

[9] ILO Responses to Indonesia earthquakes and Tsunamis, the Latest Progress Report, as of 24 February 2005.

[10] Report of the Global Unions' Tsunami Mission to Indonesia and Sri Lanka, January 2005.

[11] Website: www.apheda.org.au

[12] Working out of Disaster: Improving Employment and Livelihood in Countries in Affected by the Tsunami, Bangkok, ILO, 2005

[13] Please, see Annexe for Project Report from the ILO Office.

[14] Known as BRR in Indonesian initials

[15] It takes three women a day to make an umbrella, the sale of which yields 20,000 Rupiahs in profit, sufficient to buy rice for a family for five days.

[16] SUPM Ladong is one of the eight institutes specialised in fisheries in Indonesia. It had 240 students in January 2007.

[17] Survey of the Demand for Microfinance Services in Coastal Aceh, ILO and Mercy Corps, ILO Jakarta Office, 2006

[18] ADB has allocated USD 10m to support impoverished families in Aceh, http://www.adb.org/tsunami/two-years-on/investment-aceh.asp

[19] 'Especially in rural areas the prospects of finding business support are bleak, but also in more urban areas where business development service providers do exist, their outreach to small and micro entrepreneurs is rather slim. This lack of a formal business support structure is one main reason, why women entrepreneurs heavily rely on their families to provide finances, business advice as well as moral support. Men tend to also rely on their families for business support, but often they also turn to friends and the community.' , Executive Summary, Factors affecting Women Entrepreneurs in Establishing and Expanding Business in NAD Province, Claudia Muller, ILO, Jakarta, 2006.

[20] Ibid

[21] Work Plan 2008, TUCC

[22] It compares well with 4% - rate of unionisation for Indonesia as a whole

[23] Data quoted by TUCC

[24] Aceh branch of reformed New Order-era Union Confederation

[25] Aceh branch of ITUC-affiliated confederation, formerly with World Confederation of Labour

[26] Established in 2006 out of KSBSI in Aceh

[27] Branch of national confederation affiliated to ITUC, several local member unions in postal, insurance, cement, part of leadership of TUCC

[28] Work Plan 2008, Appendix, TUCC

[29] According to the data compiled through the exercise, the total trade union membership in the Province is said to be 95,096, with the informal sector accounting for 9,143.

[30] In addition to these, a number of other trade union courses have been held under the Project.

[31] Serikat Pekerja Kesehatan Aceh in Indonesian

[32] Wahana Lingkungan Hidup Indonesia (WALHI) - Friends of the Earth Indonesia

[33] The membership of KSBSI, for instance, has grown from 2,200 to 4,500, Spotlight Interview with Rekson Silaban, KSBSI - Indonesia, ITUC Website, 2008

[34] There was no English translation of the texts available at the time of the visit. This section is based on the information provided by Thushara Dibley a PhD student from the University of Sydney, assisting with a research project into unions in Indonesia.

[35] Work Plan 2008, Trade Union Care Centre

[36] Based on the Exchange rate on 08 March 2008

[37] The annual inflation rate in Aceh has been in decline since December 2005 when it rose to 41.5%. Aceh Economic Outlook, World Bank, November 2007.

[38] 'This is done with the apparent approval of labour dispute settlement committees', Internationally Recognized Core Labour Standards in Indonesia, Report for the WTO General Council Review of the Trade Policies of Indonesia, Nov 2007

[39] There was a brief meeting with Nathalie Cheubini, Programme Manager of HI based in Banda Aceh during the visit to the Aceh Province.

[40] Manpower Act 2003

[41] It does appear that the changes have not been clearly spelt out in the proposed text and that the relevant sections merely refer to measures to be taken 'in accordance with the Sharia Law'.

[42] The Helsinki Agreement: A more promising basis for peace in Aceh, Edward Aspinall, East-West Center, Washington, Policy Studies 20, 2005.

[43] When the Indonesian government imposed the sharia law and sharia police on Aceh during the conflict, the GAM is said to have opposed it.

[44] Only 7 out of 30 unions functioning in Aceh claim to be able to collect dues on a regular basis.

[45] Spotlight Interview with Rekson Silaban, KSBSI - Indonesia, ITUC Website, 2008

[46] The Seminar held in Banda Aceh for the discussion of the Draft Labour Laws provided a useful opportunity to meet a cross-section of the Acehnese trade union movement.

[47] Article 1

1. For the purpose of this Convention the term "discrimination" includes -

(a) any distinction, exclusion or preference made on the basis or race, colour, sex,

religion, political opinion, national extraction or social origin, which has the effect of

nullifying or impairing equality of opportunity or treatment in employment or occupation;

(b) such other distinction, exclusion or preference which has the effect of nullifying or impairing equality of opportunity or treatment in employment or occupation as may be determined by the Member concerned after consultation with representative employers' and workers' organizations, where such exist, and with other appropriate bodies.

2. Any distinction, exclusion or preference in respect of a particular job based on the inherent requirements thereof shall not be deemed to be discrimination.

3. For the purpose of this Convention the terms "employment" and "occupation" include access to vocational training, access to employment and to particular occupations, and terms and condition if employment.

[48] 'Women are concentrated in informal employment relationships, and in the low-pay and low-skilled jobs in the formal economy. There is a substantial gender wage gap and discrimination in employment. Poor economic conditions have led to further deterioration in the situation of women workers in Indonesia. The situation of women migrant workers and domestic workers is characterized by exploitation and non-respect of workers' rights.' The ITUC Report for the WTO General Council Review of the Trade Policies of Indonesia, November 2008