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

: 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.


INTRODUCTION
Collective Labour Agreement negotiation is a process in which a group of workers which is represented by a labour union sitting in a negotiation table with Representatives of Management to define and make an agreement of terms of employment, employee benefits and other employees rights as refer to prevailing regulation in Indonesia.The mechanism of conducting negotiation process is regulated under Labour Law No:13 Year 2003 and Ministry of Manpower Decree No:28 Year 2014 regarding the technical guidance of conducting Collective Labour Agreement in Indonesia.
According to Article 118 Law No:13 Year 2003, "in 1 (one) enterprise only 1 (one) collective work agreement can be made that shall apply to all workers/ labourers working in the enterprise in question'.(Indonesia Labour Law No:13 Year 2003).This article clearly stated that there is an obligation for a company in Indonesia to make a Collective Labour Agreement when there is union exist in the company.[1] The process of conducting Collective Labour Agreement is slightly different from one Company to another Company, however Government has set up a guideline for the companies in Indonesia through the Ministry of Manpower Regulation No:28 Year 2014.In general, process of Collective Labour Agreement making looks like this: 1.There is a need for Negotiation.This is aligned with the article 118 Labour Law Year 2003 as stated earlier.The need for conducting Negotiation There might be industrial dispute happened during the preparation stage due to certain conditions that should be fulfilled and followed by Company and Union as refer to prevailing Labour Law.2. Preparation and eligible representative for Negotiation.Management and eligible labour Union should choose representatives to negotiate for their interests.The representative of each party should obtain a mandate from Board of Directors and Labour Union body prior to conduct negotiating process.Both sides will review the existing Collecting

LITERATURE REVIEW A. Laws and Regulation
The Manpower Act 13/2003 provides for the conclusion of collective labour agreements in Indonesia's industrial relations system.The Act describes collective labour agreements as a product of agreement between a trade union and employer which must contain at least the rights and obligations of the employer, the Labour union and the workers.In one company there is only one (1) collective labour agreement and apply to all workers within the company (Labour Law NO:13 Year 2003, Article 119).[1] Where there are multiple unions at an enterprise, the union whose membership totals more than 50% of the workforce can negotiate the collective agreement.
Collective Labor agreement is a product of Negotiation Process between the Company and the workers.Collective Labour Agreement is a written contract negotiated through collective bargaining for employees by one or more trade unions with the management of a company (or with an employers' association) that regulates the terms and conditions of employees at work.This includes regulating the wages, benefits, and duties and right of the employees and the duties and responsibilities of the employer or employers and often includes rules for a dispute resolution process

B. ILO influence in Indonesia
According to ILO, Collective bargaining "extends to all negotiations which take place between an employer, a group of employers or one or more employers' organisations, on the one hand, and one or more workers' organisations, on the other, for: (a) determining

C. Labor Union
In Indonesia, Labor union or trade union is an organization of workers or labourers who unite together to accomplish common objectives in areas such as employee benefits, welfare, wages, hours and working conditions.Through their representatives, union bargains with the employer on behalf of its members (permanent employees) and negotiates Collective Labor Agreement (collective bargaining) with the employer.This may include employee's benefit such as: wage negotiations, work rules, grievance procedures, rules regarding hiring, firing and promotion, employment benefits, safety procedure and workplace policies.
In Indonesia, the definition of a Trade/labour union based on the Trade Union Law Number 21 of 2000 is an organization formed from, by, and for workers/labourers both in the company and outside the company, which is free, open, independent, democratic, and responsible for fighting for, defending and protecting the rights and interests of workers/labourers as well as improving the welfare of workers/labourers and their families.[4] The increase in the number of labour unions in Indonesia from year to year has a significant impact on the investment climate and industrial relations in each company.Sometimes, the presence of a trade union is perceived as a problem due to no harmonious relationship between the trade union and the entrepreneur.

A. Research Design
In conducting this research, the author formulates a research design as guideline and reference to answer the research questions defined at the beginning of this thesis writing.This research design is to ensure that the evidences obtained during the data collection period enables the researcher to answer the initial question as unambiguously as possible.In this research, the author uses qualitative approach because this study focuses on the analysis of Negotiation Strategy and its impact on Collective Labour Agreement process in PT.LAYAR BERKEMBANG Indonesia and to get qualitative data from the accountable person and the experts of negotiation process.
Qualitative approach also helps the researcher to get the rich and detail understanding of future scenarios, especially with complex situation, high uncertainty level, and the data is difficult to quantify.Within this qualitative approach, Creswell (2014) also mentioned about the type of study that the researcher could conduct, that is case study.The case study provides an in-depth analysis of the case in a bounded environment (eg, subject, time, and activity).The case study also allows the researcher to focus on exploring the holistic understanding of the system in the scenario planning process and describe the characteristic of developed scenario accordingly (Creswell, 2014;Mc Combes, 2022).[6] Figure 2 shows the research design framework that will be adopted throughout this research process.This research is started with selecting the research approach, using qualitative method and case study at PT. LAYAR BERKEMBANG Indonesia, that is bounded to the main issue or research questions.The next step is to collect the data and work through data analysis.At this stage researcher will explore and discover several trend and activities as the basis of scenario development, and will be used as key driving forces.
The selected driving forces are then used in the scenario planning stage as critical uncertainties in order to develop the plausible future scenarios.The scenario planning output (improvement) can be leveraged to define the future Negotiation Strategy for PT.LAYAR BERKEMBANG Indonesia.

B. Data Collection Method
Data collection methodology determine how the researcher tried to find some facts and future trends in scenario planning process (Van Notten, Rotmans, Van Asselts, & Rothman, 2003).[7] There are two data sets that are collected in this research, Primary and secondary data.Primary data is data type that is gathered from data source through participatory approach while secondary data is compiled from different sources as journal, articles, research paper and other sources, To make this research more accountable and support the analysis purpose of the current issues of decision-making process related to Collective Labour Negotiation Process in PT.LAYAR BERKEMBANG Indonesia, the researcher will use the following Data Collection methods:

Primary Data Collection
Primary data collection involves the collection of original data directly from the source or through direct interaction with the respondents.This method allows researchers to obtain firsthand information specifically tailored to their research objectives.Knowing that decision making process of Collective Labour Agreement is a sensitive data and information for the company, the researcher will use the following techniques for primary data collection: 1.Questionnaires In this technique, researchers design semi structured questionnaires or surveys to collect data from individuals or interviewee in this research.The question is designed to trigger the discussion between interviewee and researcher to find more accurate information related negotiation strategy and process at PT. LAYAR BERKEMBANG Indonesia and best practice in the industry.

2.Interview
To enrich and provide more clarity on the survey data, Researcher will conduct an Interviews involve direct interaction between the researcher and the respondent.For this Interview method, researcher will formulate a structured (with predefined questions), semi-structured (allowing flexibility) interview process, or unstructured (more conversational) to get all information needed related to decision making process on Collective Labour Agreement within PT.LAYAR BERKEMBANG Indonesia.

3.Focus Groups Discussion:
The researcher will also conduct Focus Groups Discussion with certain position within PT.LAYAR BERKEMBANG Indonesia.Through this FGD, the researcher will form a small group of individuals who are the key decision maker in the company, to discuss how Strategic Negotiation process is conducted and set prior to conduct Collective Labour Negotiation process with the unions.This method will help the researcher in understanding opinions, perceptions, and experiences shared by the participants on how Strategic Negotiation decision making process is conducted prior to conduct collective labour negotiation process with unions.

Secondary Data Collection
To complete data collection method, researcher also will use Secondary Data Collection method involves using existing data collected from the relevant department (Human Resources) and the responsible Director/Manager related to Collective Labour Agreement process.The purpose of this secondary data collection is to allow the researchers make an analysis and interpret current data to extract relevant information.
Through this Secondary data collection method, the researcher will obtain several data from various sources, including: 1

C. Data Analysis Method
Data analysis is the process of collecting, modelling, and analysing data using various statistical and logical methods and techniques.
Since the data is collected in this research collected through a qualitative approach, in-person interview, it contains a large amount of data that is difficult to understand and summarized.This data has no meaningful information to clearly answer the research question, Therefore, it needs to be systematically segmented and organized to form several key texts, (Creswell, 2014).[6] To transform the data in to highly organized information, Content Analysis is chosen as the methodology.
The analysis of the data needs to start with transcribing the recording version to texts, so that the researcher could get the raw data and have it processed further.According to (Erlingsson& Brysiewicz, 2017), [8]  interviews to form categories or themes is a process of further abstraction of data at each step of the analysis from the manifest and literal content to latent meaning.
Once the text is ready, the data is then analyzed from bottom up, inductively, through different stage.The transcribed text, from the raw data, later will be segmented into separate sentences and will be given an initial label so that it can be arranged accordingly.The segmented data is then shortened with the intention to make it condensed while maintaining its substance.At this stage, the researcher will need to re-read the sentences several time to ensure the context is established and shorten the sentence as well.The initial label can still be re-tagged if it is required, for example due to the condensed version has different meaning with the label.This label is considered as a code, where it represents the concrete substance of the condensed sentence, The next step is to categorization of codes that are related each other to form a context, One or multiple categories will then be generalized into themes.
In the context of scenario planning, these themes are considered as the driving forces, which can then be used is scenario planning for the next negotiation strategy for PT.LAYAR BERKEMBANG Indonesia.

RESULTS AND DISCUSSION A. Analysis
The author has analyzed the business environment and Process of negotiation strategy of PT.LAYAR BERKEMBANG Indonesia both externally and internally.
In doing the analysis, the author examined external factors that could affect the Strategic Negotiation process by using PESTLE analysis, and Industry Analysis.Meanwhile, the analysis of internal business environment is carried out by using resource-based view analysis, core competency gap analysis and SWOT Analysis.isalso acceptable if you separate the "Results" and "Discussion" into different sections.

External Analysis
PESTLE that contains of Six aspects that are; Political, Economy, Sociocultural, Technological, Environmental and Legal as well as the Five Forces framework that contains of Rival Firms, Buyers, Suppliers, New Entrants and Producers of Substitute Products are all part of company's external environment as illustrated in below figure.Many scholars and NGOs have demonstrated their disappointment to the Government.The Omnibus Law is associated with profound adjustment to legislation that otherwise presents obstacles to investment, including the revision of 79 laws, reorganization of legislation into 11 clusters and adjustments to more than 1000 articles, including those impacting labor law, social law, and national social security agency law (Amnesty International 2020).[9]Many protections from the 2003 labor legislation have been deleted or modified.A new law on wages and job security is considered a threat, specifically because it does not consider inflation rates for the minimum wage.Therefore, it revokes the set city district minimum wage.In practice, without inflation and cost living criteria for determining the minimum wage, poor areas like Papua are further weakened with not enough income to cover the daily cost of living (Usman Hamid 2020).[10] Another issue of concern is the relative security of the worker when signing a job contract.Under the Omnibus Law, employers cannot offer a permanent job contract but can provide a temporary contract for an indefinite period, meaning that the worker can more easily lose their job.The review of Labor Law presents a new threat with the possibility of performing "work for free", meaning extra work that does not produce income for the worker.Moreover, article 93 (2) of the Labor Law does not allow for paid time off during menstruation, which is a significant violation of women's rights.[11] Below is the summary of Amendment of Employment Benefit through OMNIBUS LAW (UU No:11 Year 2020) that is being replaced by PERPU No:2 Year 2022.The changes of Employment Chapter under OMNIBUS LAW have brough significant impact for both Company and Employees.
To revive domestic competitiveness and create more jobs, the Omnibus Law reformed Indonesia's labour-related regulations.But while the relaxation of labour laws can induce higher private investment, it can also harm workers.

Economy Inflation Rate
The economic indicator and outlook are the main reference for benefit negotiation during Collective Labor Agreement negotiation process.Inflation rate and Cost of Living Adjustment are the main economic indicators used by the company to convince unions and employees on lower or minimum increment for wages and other employee benefits.Inflation in Indonesia is mostly driven by supply-side pressures (cost-push inflation), demand-side pressures (demand-pull inflation) as well as inflation expectations.Cost-push inflation factors include exchange rate depreciation, the impact of imported inflation, especially from trading partners, higher administered prices as well as negative supply shocks due to natural disasters and disruptions in the distribution chain.On the other hand, demand-pull inflation factors include high demand for goods and services relative to supply.In a macroeconomic context, demand-pull inflation is a condition illustrated by real output exceeding potential output or aggregate demand exceeding economic capacity.Meanwhile, inflation expectations are affected by the behavior of the public and economic actors in terms of taking economic decisions based on expected inflation.Therefore, inflation expectations are adaptive or forward looking.In PT.Layar Berkembang, Management also considers cost of Living adjustment in Indonesia as the other factor of designing employment budget for Collective Labor Agreement Negotiation Process.Cost living adjustment is considered as part of Merit increment that is linked with Individual Performance throughout the year, the better the performance of an employee then the higher merit increment will be received during merit increment pay out.

Socio Cultural
The socio-cultural environment plays significant role for development of the business.The nature of socio-cultural environment is also constantly evolving and changing, giving rise to opportunities and threats for businesses.Therefore, companies need to monitor these trends and consider their strategic implications for them.Socio-cultural factors or social culture (socio-cultural environment) The other opportunity that could be applied by management of PT.LAYAR BERKEMBANG Indonesia is to build coordination in advanced with local manpower authority, The Management of PT.LAYAR BERKEMBANG Indonesia may request for assistance during the preparation stage and get technical guideline on how to conduct a lawful negotiation process as refer to prevailing regulations.THREAT The Threats section of the SWOT analysis considers the external factors that could potentially harm the company or derail the pursuit of its goals.Who or what is your company worried about right now? Are there any issues that could ruin your negotiation plans and make the negotiation process become un productive? 1. Influence of Union Federation It is very important to build communication to Union Federation SPSI as the affiliate partner of PT.LAYAR BERKEMBANG Union.In some to cases, Union's Federation plays significant role in directing their member during negotiation process and any industrial issue in the company.
There have been major changes to trade unions in Indonesia since the political transition to democratization, beginning in 1998.
From 1975, the All-Indonesia Workers' Federation (FBSI), later changed to FSPSI, was the only trade union permitted in Indonesia and was significantly shaped by the government.Workers protests grew in the 1990s and workers attempted to establish their own organized movements outside the SPSI.However, attempts by workers to organize outside of the FSPSI were met with heavy repression, with several union activists imprisoned and protests quashed by the government.

Impact of OMNIBUS LAW (JOB CREATION LAW)
It is a public knowledge that unions and its federation in Indonesia are still rejecting the implementation of OMNIBUS law until today.There are massive rejection and rallies against the government in all areas and this might be a threat for company when the Unions Negotiating Team insist to include the Omnibus Law related points to be subject of Collective Labor Agreement Negotiation process.
3. The increase prices of fuel have increased the living cost and affect working daily expenses.This could be another external factor that could use by union as the reference for increasing current benefits entitlement.The fluctuating interest rates in the country after COVID-19 pandemic also do not provide a stable financial and economic environment which will make Union's bargaining power stronger and make themselves in defending and aggressive mode rather common interest base negotiation approach.

SWOT Tows Matrix
Following the completion of SWOT Analysis, the author develops strategic Negotiation Option for PT.LAYAR BERKEMBANG Indonesia by using SWOT TOWS Matrix as illustrated in the following picture.Through the SWOT Matrix, the author will explore how PT.LAYAR BERKEMBANG Indonesia make use of its strength to take advantage from external opportunities to support its negotiation strategy in Collective Labor Agreement Negotiation process.

Figure 1
Figure 1.Current Negotiation Process Model After the era reform, Union existence in Indoenesia become stronger and play important role in Industrial relation and investment climate.With the existence of Law, No:21 of Year 2000, there are a lot of union federations emerge and start to increase union's bargaining position against the employees and the government.After the ratification of Convention No. 87 on Freedom of Association and Protection of the Right to Organise in June 1998, the issuance of a government regulation on union registration and the passage of Trade Union/ Labour Union Act No 21/2000, which allowed a group of ten or more workers to form a trade union, there has been an increasing number of new trade unions registering in Indonesia.[5]

Figure 2
Figure 2. Research Design

Figure 3
Figure 3. Data Content Analysis

Figure 4 .
Figure 4. Component of Company Macro Environment

Figure 5 .
Figure 5. SWOT Analysis Based on the data collecting from Ministry of Manpower office, there were a total of 17.853 Collective Labour Agreements between trade unions and private enterprises in 2022.These number give us an overview that Collective Labour agreement negotiation process is very sensitive issue and a failed negotiation or a deadlock negotiation could affect industrial relations climate in Indonesia and affect company operational activity.Therefore, the government must take a serious care and assistance to companies and Labour Unions when conducting Collective Labour Agreement Negotiation Process.Through the Ministry of Manpower Regulation No:48 Year 2004, the steps of conducting Collective Labour Agreement Negotiation process is regulated starting from the preparation stage, how to build a negotiation procedure, how to conduct negotiation process, who is the eligible unions for representing workers on negotiation table with the company and dispute resolution if Negotiation failed to achieve an agreement.

Table 3 . Inflation Rate in Indonesia (Bank Indonesia)
Besides Inflation Rate, there is another Economic indicator that is used by Company when designing company's strategy and the budget for Collective Labor Agreement Negotiation Strategy, which is Indonesia export and FDI.Cost of Living Adjustment