- Prof. Payaman Simanjuntak from Krisnadwipayana University recently highlighted the importance of amending Law No. 2 of 2014 on the Settlement of Industrial-Relations Disputes (“UU PPHI”). According to Prof. Simanjuntak, since its effective enforcement back in 2006, the UU PPHI has yet to accommodate any practical implementation of a trial process aimed at the speedy settlement of disputes involving industrial relations.
- In his statement, Prof. Simanjuntak outlined the general process involved in such settlements, which encompasses the following procedures: 1) Bipartite deliberations; 2) The recording of any failure of bipartite deliberations with regional manpower regional agencies along with the provision of sufficient proof; 3) Offers from agencies to resolve disputes through processes of conciliation or arbitration or otherwise through mediation; and 4) Legal proceedings implemented through industrial-relations courts as a last resort. In addition, Prof. Simanjuntak explained that most offers to resolve disputes through processes of conciliation or arbitration were not sufficiently open.
- Other remaining issues in this area include trial proceedings during cassation processes undertaken at the Supreme Court, which may prejudice labor rights during the juncture period for any legally binding decision. Prof. Simanjuntak is therefore urging an amendment to UU PPHI to be included in the national legislative program for 2021.
- Also offering important input regarding this issue, Mr. Sugeng, an ad hoc judge at the Industrial Court, explained recently that Indonesia’s industrial-dispute settlement system quite closely resembles the German system. However, the German system utilizes special independent court institutions in order to resolve industrial disputes, whereas Indonesia processes industrial disputes through its general courts.
- For more on this story, see Hukumonline: “Mendorong Revisi UU PHI Segera Masuk Prolegnas 2021”.
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