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Jakarta Post

Improve social dialogue in industrial relations

PREMIUM
Bandung   /   Sat, July 20, 2019   /  10:02 am
Improve social dialogue in industrial relations Workers are marching during the annual May Day rally in Jakarta on May 1, 2019. (JP/Donny Fernando)

The plan to revise Manpower Law No. 13/2003 has caused a sharp division between trade unions on one side, and employers as well as the government on the other. The contentious issues, as expected, revolve around workers’ protection. The unions reject the planned revision while the government-employer alliance deems the revision necessary, because the law protects workers too much to the detriment of companies. The Indonesian Employers Association (Apindo), which initiated the plan, has proposed revisions that would simplify the process of increasing minimum wages and decreasing severance pay, provide more opportunity for flexible employment through outsourced labor and also simplify layoffs. The unions unanimously rejected the Apindo proposal, arguing that even though the law regulated minimum wage increases, the state had taken over the process to nullify the need for negoti...

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