Political Perspective of Law on Empowerment of Arbitration as Institution for Settlement of Industrial Relation Disputes

Abstract

The purpose of this dissertation is to investigate and analyze: (1) why industrial relations court is chosen in the settlement of industrial disputes rather than arbitration, (2) what the significance or role the arbitration can do in the settlement of industrial relation disputes that it should be empowered, (3) how does the form of empowerment and arbitration model of industrial disputes that is expected. The research was done by doctrinal methodology that examines the law that is conceived and developed on the basis of the doctrine adopted by researchers and non-doctrinal research that examines laws that live and thrive and prevail in society. To support these two approaches, the researcher used several theories, including the theory of justice, dispute resolution theory, the theory of empowerment, and politic of law theory. The results shown that (1) the court of industrial relations (PHI) is still the main choice simply because of its pragmatic reason since there are no court fees and costs of execution until the lawsuit reaches the value of Rp.150 million, the lack of socialization on arbitration (internalization) that made it unknown, especially to workers, and consideration that cost of arbitration is expensive; (2) the significance and the role that can be carried out by arbitration: the public have lost confidence toward the court, including PHI (distrust), which needs to be canalized through arbitration, as a professional institution, having high competence, legal certainty, with its decision being final and binding that can be directly executed, where the relationship of the disputants remain good as the investigation is closed, and reducing the number of cases piling up in the Supreme Court; (3) the form of empowerment: to change the paradigm of society that does not always think only through PHI, justice and legal certainty can be obtained (justice in many rooms), comparing arbitration in various countries, improvement of various regulations by proposing amendments so that the competence upon disputes can be resolved through arbitration equally as the competence of PHI. Arbitration model for industrial relation disputes puts deliberation for consensus and is referred to as the Arbitration of Five Pilars (Pancasila), in every stage of examination; it should be started with deliberation for consensus, and peace. Amendment and replacement of laws governing the settlement of disputes by UUPPHI a legal perspective that needs promptly to be done under political will support from government, legislator and stakeholders. To create regulation on dispute resolution with mainstream being focused on fairness, benefit and legal would certainty be realized through the institution of arbitration?

Keywords: Industrial Relations Court, Empowerment of Arbitration, Political Perspective of Law, Arbitration Model