BackgroundConflict is inevitable in employment relationships and it affects workers, investments and economic activities – therefore establishing effective dispute prevention & resolution procedures is critical for fair, harmonious employment relations and productive enterprises. While there are many immediate causes for conflicts in labour relations, the underlying root cause often is the inadequacies of social dialogue and collective bargaining mechanisms which then lead to industrial disputes being piled up in the judiciary for resolution. Judicial resolution takes time, is often costly and neither promotes labour-management collaboration nor prevents disputes. It would be in the interest of economic efficiency of investments, productivity and workers welfare if culture of bipartite social dialogue, collective bargaining and mediation as dispute resolution system and process is strengthened in Indonesia.
Law No. 2 of 2004 is the primary legal basis for settlement of industrial relations dispute. The law gives precedence to bipartite negotiations for the voluntary settlement of labour disputes, followed by out of court processes of mediation, conciliation and arbitration. The success of these out of court processes will not only promote the use of voluntary approaches in dispute settlement but can also strengthen collective bargaining culture in the resolution of disputes. Omnibus Law on Employment Creation enacted in October 2020 also seeks to give importance to collective bargaining as a tool for regulating labour relations – but the practice of this will require support and capacity building, especially for negotiation skills. and relationship building.
The settlement of labour disputes through mediation is done by a mediator at each manpower office at the district/city level. The officials who deal with labour cases are often transferred from one office to another by local authorities which has negative consequences for the quality of mediation as the competencies and technical skills acquired by these officials is then lost. In Indonesia mediation can be a very effective means for resolving disputes but this process needs strengthening from the point of view of - infrastructure for mediation, quality of mediation and standardizing service standards. On the other hand, conciliation and arbitration are not frequently used by the parties. While the intention is to help and reduce the burden of the mediators in settling the disputes, a review for these mechanisms need to be conducted to optimize all channels of the dispute settlement mechanism in Indonesia.
Outcomes to be achieved:
- Greater success of Mediation as a dispute resolution mechanism (example: number of cases parties settle through mediation, rather than street or court conflict)
- Growth in collective agreement culture for dispute resolution;
- Improvement of Dispute Resolution system (data, record keeping, processes, and coordination among the dispute settlement institutions).
Trainers and Facilitators
- Ms. Elizabeth Brenner and Mr. Jimmy Valentine, Commissioners of FMCS will be the main trainers.
- Ms. Adriani, Director of Mediation, will be the national resource person.
- Ms. Lusiani Julia from the ILO will be the facilitator.