Role of managerial flexibility in dealing with disputes

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Illustration by Feri Fenoria

UNAIR NEWS – Law Number 22 Year 1957 regarding the settlement of labor disputes is one of the legal products in Indonesia which regulates relations disputes in the industrial world. Dr. Lanny Ramli S.H., M.Hum., a lecturer in Faculty of Law of Universitas Airlangga, once examined the issue of dispute resolution in his study entitled “Flexibility Management to Solve Industrial Relations Dispute”.

In the law aforementioned, there are two types of disputes that are regulated. The first is a dispute regarding rights related to the fulfillment or non-fulfillment of the reality of an employment contract, and the second is a dispensation of interests which regulates efforts to find opportunities on labor conditions to employers.

Lanny considered there are various factors triggering disputes in industrial relations. The data she processed mentioned that there were four major factors for the occurrence of disputes, the number of workers more than the number of opportunities to work, the development of modernization in the factory, thus reducing the number of labor, the development of machines and computers that were more sophisticated than humans, and sometimes these regulations cannot compete with time.

“In reality, workers are taking various actions in resolving disputes that are felt to be heard by employers. One common action is to carry out work strikes. The strike is a reflection of the 1945 Constitution of the Republic of Indonesia Article 28 E Paragraph (3) which states that everyone has the right to freedom of association, “said Lanny referring to May Day incident in 2017 in which 150,000 workers strike.

Furthermore, Lanny explained that disputes leading to demonstrations or strikes could be questioned on the value of their success because this shows the level of communication skill between the two parties. It needs people who are aware of how the law works to mediate the heat of disputes. Things like lacking awareness, competence of mediator, and openness between parties are sometimes less considered.

Legal products such as Law Number 2 of 2004 have offered many ways to resolve disputes, ranging from bipartite, tripartite, to conciliation or arbitration. In fact, there is a mediation step in court commonly referred to as ‘Industrial Court Relations’.

The conclusion from Lanny’s research showed that flexibility and communication play an important role in resolving any disputes that will occur or already happened. A neutral and competent mediator is also needed to make both parties aware.

“Local culture such as discussion to reach consensus for evaluation and conveying opinions with good communication, able to cover up and solve disputes occurings,” he concluded.

Author: Tsania Ysnaini Mawardi

Editor: Nuri Hermawan

Details of the research available at:

Title       : Flexibility Management to Solve Industrial Relation Dispute

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