Localization of Labor Relations in Overseas Korean Company: A Case Study of PT. Miwon Indonesia

해외투자 한인기업 노사관계의 현지화: 미원인도네시아 사례연구

Localization of overseas Korean companies has been regarded as one of vital tasks or strategies for decades. However, labor relations have not been the main object of Korean academic researchers. In this paper, I attempt to analyze strategies of localization in labor relations adopted by overseas Korean companies through a qualitative case study of PT. Miwon Indonesia, which has run business successfully for 40 years with recently achieved industrial peace. The company minimized Korean staffs and maximized Indonesian staffs. It pays more than minimum wage, and observes labor law when using outsourcing workers. The managers of the company recognize their labor union as management partner and support union activities through paying bonus for the union head and travel allowances for solidarity gatherings. There is no discrimination between plural unions. Furthermore, collective bargaining is led by indigenous managers according to the musyawarah, a local principle of bargaining. Therefore, PT. Miwon Indonesia could be regarded as a forerunner of localization in labor management among Korean companies in Indonesia. Miwon's case will serve a useful reference when discussing localization of labor management strategies.