Employers, unions agree on new labor bill

Employers, unions agree on new labor bill

Ridwan Max Sijabat, The Jakarta Post, Jakarta

Employers and labor unions put their weight behind the newly
endorsed bill on the settlement of industrial disputes, which
they say gives legal certainty both to workers and employers and
encourages harmonious industrial relations.

Secretary-general of the Confederation of the All-Indonesian
Workers Union (KSPSI) Syukur Sarto told The Jakarta Post that the
union had actively participated in informal meetings to discuss
the bill, both with the House of Representatives and the manpower
and transmigration ministry, and fully supported the new
legislation.

"KSPSI fully accepts the new legislation because its substance
in general is in line with our own draft proposed both to the
House and the government," he said.

Syukur said only a few of the 75 labor unions registered with
the government had opposed the law because it allows the
government to intervene in handling industrial disputes.

"KSPSI supports the role the government will continue to play
in the future, not only to help reach out-of-court settlements
but also because of the corrupt judiciary system in the country.
In accordance with the law, mediation is obligatory because Law
No. 13/2003, which was enacted in March, requires the government
to provide legal protection for workers, especially when they are
in trouble," he said.

It would be easier for employers to buy a ruling in a court
with a panel of only three judges as in the past than to buy a
decision by the 15-member Central Committee for the Settlement of
Labor Disputes (P4P), he added. A special court is to be set up
to try labor disputes.

Many minor labor unions oppose the new legislation, which
allows the government to intervene in labor disputes because,
according to them, the government would take employers' sides as
it did in the past while employers would be financially able to
buy court decisions on labor.

Rustam Achsan, chairman of the Food, Leather and Textile Labor
Union, said his union accepted the new legislation because it
gave more room for workers to fight for their aspirations and to
to win disputes with their employers.

Separately, Indonesian Employers Association (Apindo)
secretary-general Djimanto said Apindo appreciated the
legislation because it was expected to give investors legal
certainty when investing in the country.

"The new law stipulates quick and fair legal proceedings in
seeking settlements to industrial disputes between employers and
workers. Employers will no longer have to wait five years as they
did in the past in dealing with disputes with their workers," he
said.

Djimanto said, however, that most employers preferred to seek
peaceful out-of-court solutions to disputes with workers.

"In dealing with industrial disputes, employers and workers
can seek win-win, or even lose-lose, solutions to their
industrial disputes, which neither both side will be able to do
at the special court. But we cannot force workers to settle out
of court and employers have to be ready to go to trial if workers
insist," he said.

Meanwhile, Director General for Industrial Relations at the
Ministry of Manpower and Transmigration Muzni Tambusai said that
besides assuring fairer and quick settlements to industrial
disputes, the new legislation was expected to encourage both
employers and workers to work out a peaceful and promote
harmonious industrial relations.

"The new legislation aims not to increase disputes between
workers and employers nor encourage either side to attack the
other, but to make each aware of their obligations and rights.
Employers need legal certainty and a conducive climate in doing
business while workers need better labor conditions to improve
their welfare," he said.

Muzni explained that the new legislation not only replaced the
present law on labor, which was considered no longer relevant to
current conditions, but also to seek quick and fair solutions to
industrial disputes and accommodate workers' rights.

"The law stipulates that industrial disputes have to be
settled within 40 days through mediation, conciliation or
arbitration and 50 days through the special court. Appeals must
be ruled on by the Supreme Court within 30 days, and only
dismissals and rights violations can go to the Supreme Court,
while conflicting interests of workers and employers and disputes
among labor unions within the same company must be settled
through mediation or at the special court," he said.

He said that all agreements made through mediation,
conciliation and arbitration and those made by the labor court
and the Supreme Court would be binding and executable and the
execution fees of cases worth up to Rp 150 million would be
covered by the government.

Under the present law, decisions made by the P4P are not
executable because they can be vetoed by the manpower and
transmigration minister and the minister's veto can be filed at a
state administrative court as stipulated by Law no. 5/1986 on
state administrative courts.