Sara Lee's corporation dispute with its
employee
What
is the argument about?
Indonesia
Sara Lee Corporation is a big company engaged in consumer products, a
Chicago-based Sara Lee Corporation and operates in 58 countries, markets
branded products in nearly 200 countries and has 137,000 employees world wide.
It was shaken by the problems with its employees. About 200 workers of bakery
section which are incorporated in the Unions of Indonesian labors Sara Lee, was
held strike action in the factory yard, Km 27 Raya Bogor Street, East Jakarta,
Wednesday (10/11/19). This strike action was not only in Jakarta but
simultaneously throughout Sara Lee distributor in Indonesia. In fact, the
workers in the regions sent 'envoy' to Jakarta to strengthen their claims. The
envoy was not a person, but it was the form of a banner for the Sara Lee
Corporation that was sent from a few regions.
Who
Claims What?
The workers demanded
the management to appreciate their devotion to the period of employment in
Indonesia Sara Lee Corporation by providing them welfare, severance payment and
increasing the number of compensation in accordance with their rights.
Estimated value of the employee's claim of Rp. 172 billion. They demanded their
severance of up to eight times higher than their salary because for over a
dozen years the employee has been contributing to raise companies of Sara Lee
Indonesia achieved the Center of Exellen (COE). However, the aspirations of the
employees were never addressed by the management.
In response, Kusuma Wardhana, Operational Director of Indonesia Sara Lee, said, in fact the management of company has given more rights to the employees. Therefore, in accordance with the regulations, if an employee resigns, she/he will only get a one-time severance salary. From the beginning, Kusuma Wardhana wanted to minimize the number of layoffs, that is why the company offers to its employees are flexible. Sara Lee Corporation offers to its employees, whether to resign or stay to join even eventually the company's management would going to be changed. At last the company decided just want to give severance pay of 3.5 times higher than their salary. So each worker would get severance pay amount Rp. 36 million to Rp 80 million.
In response, Kusuma Wardhana, Operational Director of Indonesia Sara Lee, said, in fact the management of company has given more rights to the employees. Therefore, in accordance with the regulations, if an employee resigns, she/he will only get a one-time severance salary. From the beginning, Kusuma Wardhana wanted to minimize the number of layoffs, that is why the company offers to its employees are flexible. Sara Lee Corporation offers to its employees, whether to resign or stay to join even eventually the company's management would going to be changed. At last the company decided just want to give severance pay of 3.5 times higher than their salary. So each worker would get severance pay amount Rp. 36 million to Rp 80 million.
Why the Dispute Occured?
The case originated when the stocks of Sara Lee Corporation sold to Unilever Corporation. In the process of acquisition by PT. Sara Lee Indonesia is not communicated to employees in a transparent manner, especially about things related to the the provision of employee severance rights. A statement that the acquisition of the company to protect its employees. However, it was not proven because the number of options offered very minimalist while the employee required more. This has led to increasing a dispute between the employee and the Indonesia Sara Lee Corporation.
The case originated when the stocks of Sara Lee Corporation sold to Unilever Corporation. In the process of acquisition by PT. Sara Lee Indonesia is not communicated to employees in a transparent manner, especially about things related to the the provision of employee severance rights. A statement that the acquisition of the company to protect its employees. However, it was not proven because the number of options offered very minimalist while the employee required more. This has led to increasing a dispute between the employee and the Indonesia Sara Lee Corporation.
Case
Analysis and the Solution
The
struggle of hundreds of workers of Indonesia Sara Lee who demanded severance up
to eight times higher than their salary did not work out because the company
only willing to give severance pay amount of 3.5 times higher than their
salary. In their strike action who were in majority of female, they said the
strike would not stopped until their demands were fulfilled by company.
Besides, the management of company said that their demands were too high which
was company could not released it.
In
this case, the union employees / workers can obviously make efforts in
litigation or non-litigation in the settlement of labor disputes. But labor
unions need to develop a strategy, look for alternatives that exist to be able
to execute their rights, one of them by utilizing collective space berganining
in negotiating. The negotiation process is relatively fast, inexpensive and
gives access to all the disputing parties in obtaining justice or settlement
satisfactory to both parties. The negotiation process will not be able to work
well without the support of a good negotiating skills anyway. Therefore the
most important aspect in the settlement of disputes through negotiation is the
ability to negotiate the Labor Unions as a reliable negotiator.
In this case I think it needed the negotiation pattern called “Win-win Solution” where all parties are winning, the demands and wishes of both parties can be accommodated. In my opinion, the negotiations amicably is the only solution that can reduce the demo. Management of Indonesia Sara Lee must negotiate with the workers at first in order to find an agreement point. The workers should have agreed in considering and calculating the rights they deserved according to the information given by the company. Similarly, the company management should not be too discrediting the fate of the workers. The company management should be wise in communicating transparently all matters relating to the acquisition of the company in order to avoid miscommunication on both sides.
Related to the issues about the demands put forward by employees at eight times higher than their salaries, as well as with the offer provided by the company that is 3.5 times higher than the employee’s salaries, in my opinion it can be taken the middle way . Because for the company also benefited in the acquisition process so it would be better if the company can add value to their employees welfare and severance pay a slightly higher than the previous offers, may be four times higher, for the employees also are valuable corporate assets, for their contribution also so that the company can thrive by doing various promotions and worked hard to promote the product. Employees also should not be too selfish by their selfish interests because everything about the distribution of severance pay and employee well being has been in the company since its inception and has also been stipulated in labor laws. If demonstrations continue to occur, instead, Indonesia Sara Lee will have even greater losses, because if the operations are not running as usual, profits will not be obtained.
In this case I think it needed the negotiation pattern called “Win-win Solution” where all parties are winning, the demands and wishes of both parties can be accommodated. In my opinion, the negotiations amicably is the only solution that can reduce the demo. Management of Indonesia Sara Lee must negotiate with the workers at first in order to find an agreement point. The workers should have agreed in considering and calculating the rights they deserved according to the information given by the company. Similarly, the company management should not be too discrediting the fate of the workers. The company management should be wise in communicating transparently all matters relating to the acquisition of the company in order to avoid miscommunication on both sides.
Related to the issues about the demands put forward by employees at eight times higher than their salaries, as well as with the offer provided by the company that is 3.5 times higher than the employee’s salaries, in my opinion it can be taken the middle way . Because for the company also benefited in the acquisition process so it would be better if the company can add value to their employees welfare and severance pay a slightly higher than the previous offers, may be four times higher, for the employees also are valuable corporate assets, for their contribution also so that the company can thrive by doing various promotions and worked hard to promote the product. Employees also should not be too selfish by their selfish interests because everything about the distribution of severance pay and employee well being has been in the company since its inception and has also been stipulated in labor laws. If demonstrations continue to occur, instead, Indonesia Sara Lee will have even greater losses, because if the operations are not running as usual, profits will not be obtained.