Bipartite Social Dialogue for Promoting Workplace Cooperation for Improving Productivity and Conditions of Work

The overall aim of this initiative is to make LKS Bi-partite more effective as a forum for joint initiatives for productivity improvements.

Objectives

The overall aim of this initiative is to make LKS Bi-partite more effective as a forum for joint initiatives for productivity improvements; through this one day meeting, the program will seek to build:
  • Build a shared understanding on the concept of workplace cooperation, productivity and decent work approach to improving productivity;
  • Promote bi-partite dialogue between the members of LKS bipartite for follow up joint labour-management initiatives at factory level for promoting productivity and decent work in their company.

Background

The Indonesian industry has a significant growth potential if it can deal with the economic and industrial relations challenges. To harness the potential, it needs not only investments, skills up-gradation and improvements in infrastructure but also policies to improve working conditions, productivity as well as industrial relations. Despite progress, a number of decent work challenges persist, including conflicts in industrial relations. Whatever may be the causes of these disputes, it is no denying that disturbed industrial relations cause low productivity, affect rate of return on invested capital and also does not benefit the workers.

While there is a role for government policies, there is also a role and necessity of labour and management working together for promotion of productivity and Decent Work. Way forward lies in bipartite social dialogue as a tool and a process to improve industrial relations, develop shared understanding of the challenges facing the industry and the workers and put in place workplace arrangements for working together and sharing in the gains of growth. In this context, the LKS Bi-partite committees can be an important forum for social dialogue to promote labour management cooperation for productivity improvements and promotion of decent work;

Workplace practices are not a cure-all for all problems but have an influential role to play in improving company performance. Bi-partite social dialogue can pave the way for mutually agreed solutions for addressing industrial relations (IR) challenges and promote safe-productive workplaces. However for this win-win situation to come about, it is necessary to develop a concept of social partnership and cooperation between Employers and Workers organization(s) based on the principles of Pancasila, mutual trust, reciprocity and respect for each other rights. In promoting this constructive bi-partite relationship, arrangements for workplace cooperation and dispute resolution can play an important role as has been shown by the success of Japanese companies. Workplace cooperation and consultation arrangements with employees enabled many Japanese companies’ to improve productivity and become competitive globally.