Model of collective bargaining for productivity improvement “a case study from Indonesia manufactruring company”

Abstract

The main purpose of this paper is to gain indepth understanding about Collective Bargaining (CB) practices in Indonesia manufacturing company. The research is taken place in a largest automotive Manufacturing company in Indonesia that had succed improving its productivity and this study tries to build its model through its bargaining agreement practices. Beardwell, Holden & Claydon (2014) model is used as a theoretical framework in analyzing phenomena and then is developed in finding the social themes behind it. The study uses qualitative approach by adopting case study method that was suggested by Yin (2012). Data is collected by using observations, document analysis, and in-depth interviews conducted formally and informally by using snowball sampling techniques. Data are analyzed as it is suggested by Huberman & Miles (2009). The study found that reasons behind a proper CB policies and practices between union and management are both of parties: (a) stand for government regulation and follows the rules; (b) try to understand each other and hold commitment to cooperate as they have signed in Collective Bargaining Agreement (CBA) and (c) denying political interest in conducting CB and focus only on company productivity. Further data analysis found out that these phenomena are grounded from its corporate business value about people and also company policy about its production system. The study shows that the key elements in practicing collective bargaining agreements that lead to productivity improvement is not determine how strong is the power, but lies upon how its corporate business values about its employees and what system the company adopt to produce its product.