Minister: Transformative Industrial Relations Key to Resilient Industry

Manpower Minister Yassierli has stated that transformative industrial relations involving active participation from both companies and workers are key to building a resilient national industry. “I imagine that transformative industrial relations lead to a resilient industry. An advanced industry with prosperous workers,” the Minister said in Jakarta on Tuesday. He likened the relationship to two gears, with management as the first gear and labour unions as the second. “If these two gears synergise, the movement will be faster. It will be a different story if they move in opposite directions,” Yassierli explained. He assessed that most Indonesian companies are currently on a journey towards transformative industrial relations, but are only at level 1 or 2 on a scale of 5. “Currently, we see cases of unilateral layoffs, unpaid wages, unpaid holiday bonuses, and union busting. Most of our companies are still at level 1 or 2. Our dream is for them to reach level 4 or 5,” the Minister clarified. He added that industrial relations should not stop at collective labour agreements, but must evolve to include shared goals and a strategic partnership to build a resilient industry. The Minister concluded that strong synergy among all stakeholders is expected to strengthen efforts to realise harmonious, productive, and fair industrial relations, calling it a collective homework to be continuously socialised.