The Influence of Work Motivation and Job Satisfaction on Employee Performance Mediated by the Labor Union at PT Pou Yuen Indonesia: A 2025 Analysis

Abstract

Employee performance in labor-intensive manufacturing firms depends on employees' psychological conditions and the quality of industrial relations. This study aims to analyze the effect of work motivation and job satisfaction on employee performance, both directly and through the role of labor unions as a mediating variable, at PT Pou Yuen Indonesia. A quantitative associative approach was used, with a five-point Likert-scale questionnaire distributed to 385 union members selected through purposive sampling. The data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS 3. The results show that work motivation, job satisfaction, and the role of labor unions have positive and significant effects on employee performance. Work motivation and job satisfaction also have positive and significant effects on the role of labor unions, which partially mediates both relationships. The model explains 57.2% of the variance in employee performance. The company is advised to strengthen recognition, competence development, and fairness in working conditions, and to enhance cooperation with the labor union in communication and dispute resolution.