Only 4% of firms have bipartite forum

Moch. N. Kurniawan, The Jakarta Post, Jakarta

Only 6,000 firms, or 4 percent of the 160,000 companies across the country, have established bipartite employee-employer forums, a deplorably low figure that has resulted in misunderstandings and unnecessary labor disputes, the government says.

"The establishment of bipartite forums will not replace the role of trade unions, but rather will enlarge the role of trade unions," Minister of Manpower and Transmigration Jacob Nuwa Wea said on Tuesday.

A bipartite forum is a forum involving the employer and employees, or their trade union, to communicate and consult with each other on manpower issues. Such forums can also be used to settle industrial disputes.

Under the new manpower law, which came into effect at the end of March, every company with at least 50 employees is required to establish a bipartite forum.

In the absence of bipartite forums, workers and employers have often been involved in industrial disputes. Workers are often forced to resort to strikes to fight for their interests due to the absence of the forums.

A 2002 survey by the International Labor Organization (ILO)'s Jakarta office showed that less than 20 percent of 16 big companies in seven provinces -- Jakarta, West Java, Banten, East Java, East Kalimantan, Riau and North Sumatra -- had bipartite forums.

The government and ILO disagreed, however, as to the performance of the existing bipartite forums.

Director General for Industrial Relations at the Ministry of Manpower and Transmigration Muzni Tambusai said during a seminar here on Tuesday that the bipartite forums, despite their relative rarity, had proven to be effective venues for resolving industrial disputes, problems over dismissals, and strikes.

"Overall, 66 percent of 17,025 cases of industrial dispute, dismissal and strike action were resolved through bipartite forums," he said.

The ILO, however, called on the existing bipartite forums to boost their performance.

"The bipartite forums need to improve their effectiveness," ILO Jakarta Director Alan Boulton said in a statement read out by ILO acting director Patrick Quinn.

According to an ILO survey, employees were not well-informed about their company's projects, policies and strategies.

The survey also found that Indonesian companies often failed to involve employees in decision-making, failed to seek input from employees, and failed to assess the feelings of the workforce.

It also suggested that companies should adopt a more open style of communication and obtain greater input from employees.

The ILO said it would continue its survey in another 40 companies in 12 provinces as part of the effort to promote bipartite forums.

The ILO would also promote increased company productivity and improved quality of products and services through Labor Management Councils (LMCs).

"Although they will come under the umbrella of the bipartite forums, the LMCs will only focus on how to increase productivity and the quality of products and services, while the bipartite forums will talk about how to distribute the wealth to all employees," said Jose C. Gatchalian, a senior researcher from the University of the Philippines who conducted the project.