Govt enforces new law on industrial relations to promote harmony

Govt enforces new law on industrial relations to promote harmony

Ridwan Max Sijabat, The Jakarta Post, Jakarta

Despite opposition from minor labor unions, the government has
enacted Law No. 13/2003 on industrial relations and labor
protection to develop harmonious industrial ties between
employers and workers.

The new law, the first draft of which contained many
contentious articles that met with strong opposition from workers
and employers, was approved by President Megawati Soekarnoputri
on March 25.

Minister of Manpower and Transmigration Jacob Nuwa Wea told
The Jakarta Post here on Thursday that the government had no
intentions to change its mind and drop the newly enacted law, nor
even to review it, since it had won the support of most employers
and investors, as well as a majority of the 68 labor unions
registered with the manpower ministry.

"Only seven out of 68 labor unions expressed their objections
to the law; so, should the government annul the law or should I
quit (my job) for only 100,000 people going into the streets to
protest it?

"I doubt that the seven unions knew about the changes made in
the new law, and the protesters were probably workers or paid
hoodlums. The utmost importance is that the law has gained the
support of the majority of labor unions representing around 40
million workers nationwide," he said.

Tens of thousands of workers protested in several cities
across the country to mark May Day, the International Labor Day,
demanding the government to drop the new law and the manpower
minister to step down.

The new law regulates workers' rights in regards their
salaries, severance and service payments of up to 900 percent,
annual leaves, an employees' holiday of one month for three
years' employment, days off and social security protection.
Employers are also obliged to provide health, transportation and
food allowances and special provisions for voluntary child
laborers.

The law also covers industrial relations, regulating bipartite
and tripartite negotiations on industrial disputes and company
rules or collective labor agreements.

The government and the House of Representatives are still
making final revisions to the bill on the settlement of
industrial disputes, regulating bipartite and tripartite
institutions, arbitrations and labor courts.

Senior researcher Payaman Simanjuntak hailed the new law,
which he said accommodated a greater part of both workers' and
employers' aspirations.

"It is impossible for the new law to accommodate all
aspirations of both workers and employers simultaneously, since
both sides have different interests. But both sides could
intensify their bipartite negotiations in making collective labor
agreements or deals (KKB) at the corporate level," he said after
the launch of his book, Manajemen Hubungan Industrial (Industrial
Relations Management) here on Thursday.

Payaman, who is also a professor of labor economics at
Krisnadwipayana University in East Jakarta, commended the new law
for trying to encourage workers and employers to become
harmonious partners in developing better industrial relations.

"Likening a (Western) dance, industrial relations is a process
in which workers and employers are complementing, following and
supporting one another. After much practice, they become
harmonious partners," he said.

Arief Sudjito of the Confederation of All-Indonesian Workers
Union (KSPSI) stressed the importance of campaigning the new
labor law and of the government closely supervising its
enforcement.

"All labor unions and their units at a corporate level should
be empowered to campaign the law and to enforce it in bipartite
negotiations with employers. Besides, the central government
should have on-line contact with provincial and regental
administrations in supervising its implementation," he said.

Djimanto, deputy chairman of the Indonesian Employers
Association (Apindo), called on the government to exempt small-
scale enterprises from ruling on severance and service payments.

"Both the government and workers do not want small-scale
companies to close down from facing the difficulties of the
current climate," he said, adding that middle-scale and large
companies had no major points of contention with the new law.