Mediators not boxing promoters: VP

Adianto P. Simamora ,  The Jakarta Post ,  Jakarta   |  Fri, 04/11/2008 12:31 PM  |  National

Vice President Jusuf Kalla asked labor dispute mediators on Thursday to refrain from provoking either of the conflicting parties, predicting it would wreck havoc the county's investment climate.

"As mediators, you must stay neutral and impartial. You are not promoters of a boxing game. The most dangerous thing is if you act as agent provocateurs in the labor disputes," Kalla said while addressing the inaugural forum of industrial relations mediators, which was attended by 577 mediators from across the archipelago.

Kalla urged mediators to master the labor laws and be familiar with the companies involved in disputes, including their financial records and the psychological mood of their employees.

"If you think the workers are paid inadequately while their company profits, you can ask the employer to give bonuses to the workers. It is fair," he said.

Kalla warned that labor disputes could end up in violent rallies, which would further tarnish the image of the country's investment climate.

"If investors see that any labor problem is always followed by radical rallies, where protesters set everything on fire or throw stones, just believe me, it will be difficult for us to boost economic growth through investment," he said.

He said the labor system would play an important role in propelling the country's economy and investment for sake of Indonesian people's welfare.

The 2004 law on labor dispute resolution mandates the establishment of a labor conflict mediators forum.

It says workers must first seek a resolution with their employer under the bipartite forum.

However, if the dispute drags on, the workers and employers can involve officers from the Manpower Ministry as mediators.

Kalla said the more labor disputes taking place, the poorer the performance by mediators.

"To measure the success of mediators is simple: a decline in labor dispute cases. An increasing number of disputes means failure by mediators, the head of the manpower agency and even the minister," he said.

The Ministry of Manpower and Transmigration said there were only 1,038 mediators last year, down from 1,119 in 2006.

"We still need more mediators to resolve labor disputes. It is not only the responsibility of the central government, but also local administrations. They must recruit new mediators," Manpower and Transmigration Minister Erman Suparno said.

Ministry data shows there are currently 16,293 large companies, 37,185 medium-sized firms and 136,789 small-sized businesses operating in the country.

Erman said major lay offs had declined in the last three years, party due to the presence of mediators.

"Since 2005, we have recorded 81,653 lay off cases per year. Three years before 2005, dismissal cases reached 125,000 annually," he said.

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