Employers, unions set up bipartite body to mediate disputes

Employers, unions set up bipartite body to mediate disputes

Rendi A. Witular, The Jakarta Post, Jakarta

The Indonesian Employers Association (Apindo), an influential
business lobby, and the country's labor unions have agreed to set
up a bipartite secretariat that would play a key role in settling
disputes between businesses and workers, a move which some said
reflected growing disappointment over the government's poor
handling of labor conflicts.

Apindo chairman Sofjan Wanandi told The Jakarta Post on
Thursday that the establishment of the joint secretariat should
help improve the country's business climate, which has suffered,
partly, due to protracted labor conflicts.

"Businessmen want labor peace. Through the secretariat we hope
to be able to build mutual trust with the unions so that we can
avoid labor strikes and demonstrations," Sofjan said.

The secretariat is the first of its kind in the country. It
was formed during a meeting on Wednesday between Apindo and
representatives of 75 labor unions.

During the meeting both parties agreed that any dispute should
be settled through the secretariat and that the resulting
settlement would be binding. Apindo and labor unions also agreed
they would meet at least once a month to discuss various labor
problems. The two sides would meet in the first week of August to
discuss how the joint secretariat would be run, and to discuss
the mechanism to settle labor disputes.

Sofjan explained that labor problems along with illegal levies
and legal uncertainties had become disastrous factors
discouraging new investments in the country.

He said that employers were often worried about labor strikes
and demonstrations as they could be conducted at anytime and
anyplace, threatening to disrupt the production process.

The lingering labor conflict in the country has also been
blamed as one of the main factors triggering the relocation of
some foreign companies to other neighboring counties offering
better investment climates, like China and Vietnam. The conflict
has also negatively affected exports as foreign buyers fear that
labor strikes could eventually delay delivery of products.

Experts have said that luring more investments is key to
increasing the country's economic growth to around 6 percent per
year, from a meager growth rate of 3 percent to 4 percent posted
during the past couple of years. The higher economic growth is
needed to help resolve the pressing unemployment problems in the
country.

Meanwhile, National Front for the Struggle of Indonesian
Workers (FNPBI) chairwoman Dita Indah Sari said the setting up of
the joint secretariat was a sign of growing distrust in the
government's ability to settle labor conflicts.

She said the involvement of the government and lawmakers in
resolving labor problems had only made things worse as they
turned the cases to serve their political interests.

"The unions and Apindo have agreed to join forces in
protesting any government policies that are unfavorable for
businesses."

Dita praised the initiative of Apindo to form the secretariat,
saying that it would help mend the deteriorating relationships
between unions and businesses.

"This is a positive sign to (improve) the relationship between
labor unions and businessmen," Dita said, adding that she doubted
if the secretariat could fully ensure labor peace.

Labor unions mushroomed in Indonesia after the downfall of
former dictator president Soeharto in 1998.

Since then hundreds of labor unions have prevailed but have
placed the country in a dilemma since most of them run their
unions in a militant way by organizing strikes and mass
demonstrations, and burning factories, scaring away investors.