CSR : Impact on Labour Union Development

Qualitative Research on Corporate Social Responsibilities: Impact on Labour Union Development

Research Time Range : April – July 2011

Abstract :

In 2011, Inkrispena conducted research with AMRC about the impact of corporate social responsibility on workers and trade unions in Indonesia. The focus of this research is on the implementation of CSR and its effect on workers and trade unions with assumption that the content of a corporate CSR programme is everything that the company contributes toward the workers’ welfare other than that which is already included in the labour laws or in the working agreement or collective labour agreement, reinforcing the belief that the leitmotiv of CSR programmes is to divert workers’ demand or weaken, and gradually eliminate the trade union.

By investigating the CSR activities in four companies, this research shows that CSR is subtle means by which the company management can showcase its concern for the workers’ welfare and thereby arm itself with the tools to persuade the trade union to cooperate with the management. The CSR’ effective influence varies from no impact or minimum impact to the busting unions, when the company‘s CSR plans fail. The result of  this initial research shows that the formation and development of trade unions is necessary for the workersto avoid the violation of their rights, and to control the company’s CSR implementation with a collective labour agreement.

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