Megawati signs labor court law

JAKARTA: President Megawati Soekarnoputri has signed Law No. 2/2004 on the settlement of labor disputes, which replaces Law. No. 22/1957.

Minister of Manpower and Transmigration Jacob Nuwa Wea said the President signed the law on Thursday, but that it would only take effect in January 2005.

"The current system of labor dispute settlement remains effective while the government familiarizes everyone with the new law over the next one year," he said.

The minister called on the Indonesian Employers Association (Apindo) and labor unions to prepare ad hoc judges to assist career judges in running the labor court when the new law comes into force next year.

"Apindo and labor unions have to be prepared with ad hoc judges to try labor cases as of next January," he said.

The new law, which will allow for less costly and faster trials of labor cases, states that both workers and employers are allowed to bring cases to labor courts if they fail to resolve their disputes in bipartite negotiations or through arbitration. -- JP