The increasingly complex industrial relations in Indonesia have led to the emergence of Industrial Balance a balance between workers, companies, and the government. On the one hand, workers are demanding a greater say. On the other hand, companies must ensure the continuity of contracts, maintain operational stability and anticipate cost pressures. The government sits in the middle, with a duty to safeguard workers’ rights whilst maintaining a healthy investment climate.
The three may appear to be at odds with one another, yet they are in fact interdependent. Companies that fail to listen to their workers’ voices risk reputational damage and the loss of their best talent. Trade unions that rely solely on confrontation often end up in a deadlock. Regulations that are either too lax or too strict can both undermine the industry’s competitiveness.
Read the following DSLC article for an in-depth look at how to establish an industrial balance through a preventative collective labour agreement (PKB) incorporating conflict resolution mechanisms, and how to develop an adaptive sustainability strategy.