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Seminar on the Prevention of Industrial Disputes

On August 9, 2016, JILAF held a seminar on the prevention of industrial disputes, at which reports were presented on the current situation in Indonesia and China. These reports were followed by a question-and-answer session.
After an opening address by JILAF President Hiroyuki Nagumo on behalf of the organizers, Vice-President Mr. Heriyanto of the Indonesian Federation of Metal Industry Trade Unions (FSPSI) delivered a report in which he stated, “Last year the government issued decree No. 78 on wage regulations, but the impact of the new decree has been to limit minimum wage hikes and to deprive the wage council of its functions. If the government does not withdraw or amend this decree, disputes are certain to continue in Indonesia. Companies should engage in sound industrial dialogue with trade unions. The Confederation of Indonesian Trade Unions [CITU] is implementing education, training, and other measures toward the practice of sound industrial relations."
Next, Mr. Supit, Vice-Chairman of the Employers' Association of Indonesia (APINDO) gave a talk in which he said, “Previously there was frequent political involvement in the process of determining minimum wages, and the minimum wage levels decided by state governments were higher than the proposals of the central government and beyond the capacity of many employers to pay. That became the cause of disputes. Hopefully the new system will solve this problem. APINDO has set up a training center for the utilization of human resources and is endeavoring to build harmonious industrial relations."
In the second half of the seminar there were reports from China. Mr. Peng Hengjun, deputy head of the Network Department of the All-China Federation of Trade Unions (ACFTU), explained, “The number of industrial disputes is increasing year by year, but the government is taking the initiative in collaboration with related parties, and trade unions are taking the lead and making efforts to mediate through collaboration with related parties. In fiscal 2015 the ACFTU's industrial disputes mediation committee received 258,000 cases of industrial disputes and succeeded in mediating 145,000 cases, for a success rate of 56.2%. Meanwhile, regional and industrial mediation bodies received 152,500 cases of industrial disputes and succeeded in mediating 107,300 of them, for a success rate of 70.36%, which is a very good achievement."
Councilor Jing Chunhai of the Department of Economic and Commercial Affairs of the Japanese Embassy in China then delivered a report in which he noted, “In March of this year the Chinese government adopted the 13th Five-Year Plan for national economic and social development, which aims to maintain an average growth rate of gross domestic product of over 6.5% so that the average income of the people in 2020 will be double the 2010 level. For this purpose, the government is putting various economic reforms into practice. In terms of investment from overseas, Japan is top. In the opposite direction, many Chinese tourists are visiting Japan, even more than last year, and they are exerting a good influence on the Japanese economy through their spending sprees and so on. The economic ties between China and Japan continue to have a positive effect for both countries."
These reports were followed by questions from the floor and discussions, and finally the seminar on the prevention of industrial disputes ended with a wrap-up by JILAF Executive Director Takao Yasunaga.

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