New law, new hope?<\/p>\n
Given this country's poor record in industrial relations in
\nthe past, it is not surprising that the new Law on the Settlement
\nof Industrial Disputes, which the House of Representatives
\nendorsed this week, is viewed with suspicion by activists in
\ncertain segments of the labor movement.<\/p>\n
Nevertheless, the new law, which is more widely known by its
\nIndonesian acronym, the PPHI, and which now only needs the
\nPresident's signature to come into effect, represents a
\nconsiderable step forward. Employers and labor unions have both
\ngiven their support to the new legislation, which they hope will
\nhelp to enhance the investment climate in this country by
\nguaranteeing greater legal certainty for both workers and employers.<\/p>\n
In contrast to many earlier pieces of legislation concerning
\nworker-employer relations, the new law was written in
\nconsultation with, and with the full participation of, labor
\nunions, employer organizations, the government and the national
\nlegislature. Although the newly endorsed law provides for the
\nsetting up of a special court to adjudicate on labor disputes,
\nthe government, through its Central Committee for the Settlement
\nof Labor Disputes (P4P), will still be required to help labor
\nunions reach out-of-court settlements with their employers if
\nthey should prefer to work out fair and quick settlements.<\/p>\n
Ironically, it is precisely this role accorded by the PPHI
\nlegislation to the government that a number of labor unions
\noppose -- mindful, perhaps of the experience of the past when the
\ngovernment invariably sided with employers in labor disputes.
\nHowever, as the secretary-general of the All-Indonesia Workers
\nUnion (KSPSI), Syukur Sarto, remarked, the KSPSI supported the
\ngovernment's role \"because of the corrupt judicial system in this
\ncountry.\" It would, after all, be cheaper for the employers, who
\nhave the money, to buy off a panel of only three judges to get a
\nruling in their favor than it would be a 15-member committee
\nappointed by the government to settle the dispute.<\/p>\n
At the other end of the scale, most employers too welcomed the
\nnew legislation. In the view of the Indonesian Employers
\nAssociation (Apindo)'s secretary-general, Djimanto, for example,
\nthe new law should give investors the legal certainty they needed
\nto work in this country. The new law, according to the Apindo
\nofficial, \"stipulates quick and fair legal proceedings\" in
\nseeking settlements to industrial disputes between workers and
\nemployers. \"Employers will no longer have to wait five years as
\nthey did in the past in dealing with disputes with their
\nworkers.\"<\/p>\n
The only thing that remains now is for President Megawati
\nSoekarnoputri to put her signature on the document. In any case,
\nthe law says that even if she should fail to do so within 30 days
\nafter the House gives the document its endorsement, the law will
\nautomatically come into effect.<\/p>\n
On paper, then, the new Law on the Settlement of Industrial
\nDisputes appears to have given this country at least the hope
\nthat it can finally leave the turmoil of its industrial relations
\nhistory behind it. Of course, a lot more is needed than words to
\nrebuild an economy that has for years been battered by what is
\nbeyond doubt one of the worst crises this country has experienced
\nsince independence.<\/p>\n
Now that an accord has been reached between some of the most
\npertinent elements in the sphere of industrial relations, what
\nremains to be done is to build up the commitment that is needed
\nto make the new law work in practice. Judging by what we have
\nseen in the past, though, this will be much easier said than
\ndone. However, if the nation is sincere in its efforts to lift
\nitself out of the slump it is currently wallowing in, there is no
\ntime to be lost.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/new-law-new-hope-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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