UNAIR Sociology Lecturer Said AEC Weakens Outsourcing Workers

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Illustration by Feri Fenoria

UNAIR NEWS – The current era of globalization has made some changes that must be followed by people around the world. Especially Indonesia as a developing country needs to take advantage of the positive effects of globalization. One sector affected by globalization is the issue of employment.

This issue motivated one of  Sociology Lecturer, Faculty of Social and Political Sciences (FISIP) Universitas Airlangga (UNAIR), Dr. Sutinah, Dra., MS., conducted research on Bargaining Position of Outsourced Labor in the ASEAN Economic Community (AEC) Era.

Labor problems can be seen with the increasing number of foreign workers (TKA) entering and working in Indonesia since the enactment of ASEAN Economic Community (AEC) in 2015. It shows sharp contrast to the original Indonesian workforce with the problem of increasingly narrow employment, high numbers unemployment, and termination of employment.

Sutinah said that job seekers occurred across the world. Indonesia as one of ASEAN members is one of the destinations for job seekers coming from other countries (ASEAN members). The Ministry of Manpower (2015) reports the number of foreign workers in Indonesia, ranging from 68,762 people.

“Increasingly competitive competitiveness is very influential on the conditions of employment in Indonesia, especially in areas that will be difficult to get decent work,” he said.

She also added that the concern might arises in many circles related to the implementation of ASE AN Economic Community is the easier entry of foreign workers. Thus, local workers are required to increase competency, along with increasingly intense competition for work.

Outsourcing Workers are increasingly languishing

In addition to competition for work, the rapid development of the global economy and technological advances have also led to intense business competition on all fronts. With the AEC, it is not only labor that is increasingly competitive, but businesses are frequently required to adjust the market, so that fast and flexible response is needed to improve services. Therefore, structural changes in managing a business are required to be more effective, efficient, and productive.

Sutinah said one of the things that we can do to save on labor finance posts is by hiring cheap, qualified, and productive outsourced labours. This efficiency on the cost of production is what induces more and more  employers to hire outsourced workers on the grounds that the company needs to focus on dealing with what their core businesses are while other supportive jobs can be delegated to other companies/parties

She concluded that the presence of AEC makes outsourcing workers more and less prosperous. One reason is the lack of certainty of work, which can be dismissed at any time, and employers can choose other professional foreign workers.

Author: Aditya Novrian

Editor: Nuri Hermawan

Link: https://e-journal.unair.ac.id/MKP/article/view/11248

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