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Labor union & business faction consent to conclude tumult

16 May '06
2 min read

To mutually discover the paramount traditions for progress in the trade environment by holding an official national bipartite meeting in June both labour union and representatives from the business sector have agreed.

Dealings among the two factions had been anxious ever since fighting broke at out during the recent labor union gathering declining intended amendment to the 2003 Labor Law.

The labor turmoil has caused a number of overseas buyers to delay orders.

The Indonesian Employer Association (Apindo) asserts industries lost Rp850 billion due to the first rally on 1 May 2006.

Subsequent to an casual summit between the business associations and labor unions, the head of the Indonesian Prosperous Workers Confederation, Rekson Silaban, said both parties decided that strenuous hard work were desirable to bring about an economic revival.

'The forthcoming bipartite conference aspires to discover the main evils that unions and businesses face,' Rekson said.
While labor unions posture on the 2003 law is to decline any kind of change.

Rekson said a squad consisting of representatives from labor unions and business associations had been set up to put together the meeting and resolve the plan.

Chairman of the Indonesian Employers Association (Apindo) Sofyan Wanandi said the latest labor assembly had hit the business environment hard.

He said the negotiations would wrap ways to develop the on the whole business climate in Indonesia, as well as the lingering clash over the intended change of the Labor Law.

Sofyan noted a range of business segments such as electronics and textile industries had experienced a 30 to 40 percent fall in the first four months this year.

The Indonesian Footwear Association reported that after the aggressive second gathering on 3 May 2006, European buyers deferred repeat orders pending the labor turmoil to sink.

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