Thiess
Strong economic growth In the Aslant region, particularly In China, over the past decade or more has had important macroeconomic and structural effects on the Australian economy. Growth intensive nature of this growth has pushed commodity prices to a high level, which is supporting significant investment in the productive capacity of the Australian source sector and is expected to continue to support production and export of resources, as well as employment, incomes, tax revenues and wealth. B.
Multinational Companies in Australia The good economic condition of Australia is inseparable from the role of its Macs.
Four decades on, Australia is much changed by immigration, particularly from Asia, and economic reform. The result has been a decade and a half of uninterrupted economic growth with low inflation and low unemployment, and a restructuring of the economy with a relative lack of social disruption by the standards of industrialized economies. Natural resources and energy companies usually included as Australia’s 40 biggest multinational companies. BP Billion and ROI Tint, two mining giants, occupy second and fourth places in the list [3].
The top ten is rounded out by banks, financial services firms, a telecoms group and food retailers. The growing prosperity of East Asia is Australia’s latest slice of luck. China’s industrial development has created a seemingly insatiable appetite for Australian minerals and fuels, while the rise of the region’s consuming middle class has created new and growing markets for its agriculture and foods businesses beyond Japan. From those big multinational companies, we will take one example of NC that could show the readers and listeners about the role of NC for the home and host countries.
For another knowledge, we will also learn about the role of home and host countries’ government in order to support the development of the NC. In another side, we could also see the role of government in order to helping and giving solution if there is a problem that faced by the NC.
As the conclusion of the paper, we could see the use of diplomacy in International Relations especially when a country wants to increase its national interest through the role of NC in the host country. To gain all of those knowledge, we will take one of big companies from Australia which is Theses Australia.
Below are the basic background of Theses Australia before we discuss about the problem facing by Theses in the host country. C. Theses Australia Theses is Australia’s leading construction, mining and services contractor.
From humble beginnings more than 75 years ago, Theses has amassed enormous depth and breadth of experience, capabilities, skills and resources [4]. The rich history and inhering spirit continues to lay a strong foundation for Theses’ future as industry leaders. Today, Theses plays a pivotal role in building vital infrastructure, promoting the country’s resources sector and providing essential services for the communities.
Nowadays, Theses has expanded its business to New Zealand, Indonesia, and India. The geographic and market diversity give the chance for Theses to expand a broad and strong business. By delivering whole-of-life services, from initial design through to ongoing operations and facilities management, Theses provides clients with greater value now and into the future.
Theses is one of Australia’s NC that has successful to do its business in the foreign countries. Many big projects have already been done by this company.
But, there are some obstacle that faced or even made by Theses. Here, we want to focus on the ongoing case of Theses company in Indonesia. This case is about the employment issue.
The Theses Indonesian employee did the strike proposed by Theses company. This term actually has been accommodated well by the Labor/Trade Union, but, Theses Indonesia suddenly rejected to sign the agreement that actually they themselves wanted to create. Even, the management staff of Theses challenged some employee to stop work in their company. This is the basic background of the problem.
For the specific case, it will be discussed for further at the Analysis Level. Corporate Structure of Theses Company Theses Indonesia is one of Indonesian largest private contractors working in the resource, process engineering, infrastructure, and power sectors.
Services delivered to the industries include contract mining and mine development, multidisciplinary engineering, procurement and construction services for facilities and plant instruction, mineral processing, along with civil infrastructure works for green or brown field project development.
Theses first commenced operations in Indonesia in 1972. Over the past 20 years, Theses Indonesia has delivered more than 200 projects across most of the Indonesian regions. It now has more than 8,000 employees and US $2. 5 billion worth of Work In Hand [5].
Level of Analysis The dispute dates to the fourth quarter of 2011 when miners working for KIP, part of Indonesian Bump Resources, first took strike action when it became obvious that neither Theses nor KIP intended to grant a renewal collective agreement.
But the dispute at Spec’s Santa mine in Claimant province on the island of Borneo turned violent on 24 March when 400 striking workers gathered at the coal company’s office in East Kuwait district on the counsel of a local citizens group to offer themselves back to work following a second strike dating to last November. They were immediately attacked by a regional military brigade serving the interests of Theses and KIP. Twenty miners were severely beaten and hospitalized.
Another 12 were immediately detained and throughout the night of 24 March and into the next day, Alice and military rounded up another four union leaders and Jailed them.
B. The Chronology of Theses’ Employment Issue [6] September, 24th 2011 | Bargaining agreement between Theses Indonesia and its employee. I September, 29th 2011 I The Management of Theses rejected the treatise. I September, 30th 2011 and October, 3rd 2011 | The Labor Union had initiation to give a letter about the continuity of negotiation agreement between Theses Indonesia and its employee.
I October, 27th 2011 I The continuity of the agreement (Face to Face). I November, 2nd 2011 | The Labor Union met the Theses’ Management to discuss about some articles that have not been agreed.
I November, 10th 2011 I Strike was carried out and when the workers arrived at the Theses company, there were some officers who guard to block the workers from entering the territory of the company. I November, 15th 2011 | Meeting between Labor Union and Commander of the Military District as the representative of Theses’ Management.
I December, 5th 2011 | Clashes between police and Labor Union. I December, 10th 2011 I The SAT Lanes did the sweeping to prevent the Labor Union entered the strike area. I December, 19th 2011 | Discussion between Directive of Theses Indonesia stated that the employee have to back to work. I December, 27th 2011 | Meeting between Theses’ Executive Directive and Tim 13 of Labor Union.
I January, 28th 2012 | Slow Down Action. I February, 16th 2012 | Theses did the layoffs. I March, 20th 2012 | Pemmican Dada Kuwait asked the employee to back to work.
March, 26th 2012 | The employee blockaded the shuttle bus of Theses. I April, 16th 2012 | One of Kuwait Timer Parliament sent the letter of suspension to free the three members of Labor Union.
I February, 13th 2013 | Police officers held a meeting with the Theses’ Management at Victoria Hotel. I The Mac’s have provided tremendous Job opportunities to people helped cut down on the unemployment rate and helped in the growth of the country. While the Mac’s deserve a lot of credit for doing what they have done, there are some remarkable actions which seen injustice to pursue what they wanted.
Theses Indonesia management foretold its strategy to eliminate the collective agreement by telling the unions a new agreement would not be valid until after negotiations were complete. And then the stalling began.
The response coming from the Theses management are seen injustice towards the labor. Some noted actions are recognize such as enforce the rules negotiations and Theses forced the draft proposed by the company must be used whereas it has accommodated well by the SP/SUB (Labor Union). Theses management also refused to sign the treaties.
Further more Theses used regional military brigade serving the interests of Theses and KIP. Intimidation in the other hand become the short way taken by Theses management to stop the labor force.
Giving short message and even letter to the labor telling that they will got termination of employment if they keep on striking had been undermined the labor spirit to pursue for Justice from the company. Theses later on fired 6 of its employment whereas based on the Indonesian constitution it is against the law to fired the employment who are on strike.
But there was none action taken by local institution to prosecute the case. Up until now the management of PET. Theses haven’t met and sat down together to find solutions related to the employment problem.
B. Australia’s Embassy Response Since the members of Labor Union took an action to go to the Embassy of Australia to asking some help from the embassy, the Embassy of Australia seemed want to follow up this case. But, when there was a meeting between some members of Labor Union and the Australian Embassy, the Embassy of Australia couldn’t attend the meeting because he was not in Indonesia at that time.
So, to help the Labor Union, he pointed his representative to the meeting. “Akin newspaperman keypad Dubbed nut comedian Dalmatian pervading demean Dubbed, meaning aphasia Seduces dicta bias Lansing mask encamping eke PET Theses Santa, Amman beriberi demean bargain car nut adapt impermanent charlatan demean Persuasion PET Theses Santa”, said Mr.
. Rachel Dutton (Australian Police of Business Economics) [7]. C. Local Government Response Indonesia and Labor Union, but, Theses Indonesia never responded the statement letter [8].
Since the case between PET Theses Indonesia and its employee still ongoing, until now, it seems that there is no further effort from the local government to help two parties in order to solve the problem.
Local government that should take care of its society seems do nothing about this case. D. Parliament Response “Standardized tells Dalmatian oleo persuasion deathtrap peckers yang momentum barbarian straighten Korea! “, said a member of parliaments, Pomaded Hydraulically. He urged the management of the PET.
Theses Contractors Indonesia (TIC) in Santa, East Claimant, to immediately solve the employment issue which suspected as disability law [9].
The Diplomatic Resolution of Problem Nations sometimes resort to international arbitration and mediation when faced with a specific question or point of contention in need of resolution. For most of history, there were no official or formal procedures for such proceedings. They were generally accepted to abide by general principles and protocols related to international law and Justice. Sometimes these took the form of formal arbitration and mediations.
In such cases a commission of diplomats might be convened to hear all sides of an issue, and to come some sort of ruling based on international law.
Based on this case, there are two kinds of diplomatic resolution [10]: 1. Conference: The resolution of case using conference usually used through the convening of international conferences. The employment issue between Theses Indonesia and the Labor Union haven’t used this way, but, there will be an action from the Labor Union to use this action when there is no exact result about this problem.
If the demands of Labor Union are not fulfilled, Labor Union members will report this incident to the International Labor Organization (ILL) in Geneva [1 1], and they will immobile the union solidarity of Indonesia and International Labor Union. 2. Negotiations: The negotiations have already been done both by Theses Contractors Indonesia and Labor Union.
But, they haven’t found the exact result of the agreement due to the procrastination that always done by Theses Indonesia.
Even, when the members of Theses’ Management already agreed about the result of the negotiation, the head of the management which is Forenoon Normal always remained in his stance, he didn’t want to sign the agreement. So, since this case still ongoing, there is no exact result of the negotiation agreement. Theses Indonesia and Labor Union still discuss about the final result of this case that has been occurred for long time. Impacts The employment case between Theses Contractors Indonesia and its Labor Union has been occurred for long time.
Not only Theses employee that experience the impact, but, the society also experience the impact.
The unilaterally layoffs that done by Theses Indonesia has created the anger of the Labor Union. They lose their Job as their main income. Even, there are some employee who don’t get the layoffs but the many doesn’t ask them to work. So, they don’t really know about their status. Whether they are still Theses’ employee or not. The activities of the society that living near in Theses Company area also sometimes disturbed due to the demonstration action that done by the members of Labor Union.
The patience that has been lost has made the Labor Union did the postpone to sign the agreement that has been an issue for long time. Since the local government seemed do nothing to solve this problem, coupled with the intervention that done by the police who tend to stand in the ‘owner of the UAPITA’ side, public confidence especially Labor Union confidence seems decrease. Local government and other parties that actually should support and help its society to solve the problem don’t have any effort to resolve this employment issue.
As the solidarity response of the Santa Labor Union, the other groups of Labor Union (from other cities) tried to show their solidarity to do the same thing, they did the demonstration, even, some of them came to the Embassy of Australia to ask the embassy to resolve the problem. Again, because of the demonstration actions, the activities of other society little bit disrupted. Conclusion Multinational company has very big role both for the home country and the host country.
Through the NC, the home country could increase its national interest. Home country could gain much advantage through the NC.
The host country as the place of NC doing its business also could get many advantage from NC. They could decrease the unemployment, they also could do the transfer technology where the host country could learn much from the host country. But, when there is a problem that involve NC, we could also see that the role of NC also big. In this employment issue, we could see that NC could easily do the bobby to the law enforcement officers when they are facing a problem.
As the result, we could see that people who actually have to uphold the Justice are tend to stand in party that could give advantage to them.
Since the law in Indonesia still unclear, where people whose have money could buy the law, the NC that exist in Indonesia also feel easy to get what they want although they have to sacrifice their employee and the society in their surrounding. The problem between Theses Contractors Indonesia and Labor Union actually could be solved if Theses Indonesia have effort and initiation to solve this problem. But, as the fact, they didn’t have any effort to solve this problem, even they always postpone to give the final result of the agreement.
Often, when there is a meeting about the result of the agreement, Theses Indonesia always point its representative for the meeting. That’s why there is no exact result from those negotiation agreements.