Towards a more effective industrial relations dispute settlement mechanism

Effective collective labour agreement and workplace cooperation between workers and employers are keys for preventing disputes, and building and maintaining industrial peace. Nevertheless, sometimes industrial disputes are inevitable, and therefore an effective industrial dispute settlement mechanism is pivotal to restoring industrial peace.

To support the development of an effective dispute settlement mechanism, the ILO conducted a technical meeting in Jakarta on 11 October, bringing together relevant stakeholders. This second technical meeting was a follow up to the first meeting held in August 2018.

An effective resolution of labour disputes is an integral component of a successful industrial relations system. An effective dispute mechanisms would definitely benefits all parties involved."

John D. W Saragih, Director of Industrial Dispute Settlement of the Ministry of Manpower

The technical meeting reviewed the draft policy paper on industrial dispute settlement mechanism. The policy paper identifies major causes of and potential solutions to the key issues in dispute settlement as a basis for further discussions by the government and social partners.

To finalize the policy paper, feedback and inputs given by the participating stakeholders would be compiled and integrated. Feedback and inputs given covered the identification of problems and key recommendations to improve the industrial relations dispute settlement mechanism in Indonesia.

Conflict prevention is the key for developing harmonious industrial relations."

Michiko Miyamoto, Country Director of the ILO for Indonesia

John D. W Saragih, Director of Industrial Dispute Settlement of the Ministry of Manpower, greatly welcomed the development process of the policy paper. “An effective resolution of labour disputes is an integral component of a successful industrial relations system. An effective dispute mechanisms would definitely benefits all parties involved,” he said.

Meanwhile, Michiko Miyamoto, Country Director of the ILO for Indonesia, highlighted the importance of the policy paper as a means to have a harmonious industrial relations in Indonesia. “Conflict prevention is the key for developing harmonious industrial relations,” she said.

The policy paper will be finalized based on inputs and feedback given. The development of the policy paper was part of the ILO support to Indonesia through its Labour Standards in Global Supply Chain (LSGSC) Project.

The ILO LSGSC Project is aimed to support the enhancement of social dialogue among national and sub-national tripartite constituents on priority issues including wage policy and collective bargaining. Funded by the German Federal Ministry for Economic Cooperation and Development, the Project is also aimed to promote collective bargaining at enterprise level.