Conceptual Dynamics of Industrial Relations
Labor Relation which in its historical beginnings was translated as Labor Relations, includes discussions regarding problems that arise in the relationship between workers and employers. However, in its dynamics, the scope of Labor Relations is considered too narrow and reduces other factors such as economic, social, and political factors. Problems that arise in the relationship between workers and employers cannot be separated from the example factors that have been mentioned. Departing from this reality, the concept of Labor Relations or Labor Relation transforms into Industrial Relations or Industrial Relation.
Looking at the transformation of the concept of Industrial Relations itself, its scope has also transformed. The scope of Industrial Relations is not as simple as Labor Relations because Industrial Relations regulates various other aspects outside the relationship between workers and employers. Several aspects regulated in Industrial Relations are: terms of employment, wages, job security, social security, and occupational safety and health.
The breadth of this scope also drags other actors into these Industrial Relations, which were originally workers and employers. The government, as a regulator on the one hand and an executor on the other, is also involved in the dynamics of these Industrial Relations. It can be seen how the Government, with its authority and legal instruments, makes regulations concerning these Industrial Relations while also playing an active role through State-Owned Enterprises (BUMN), for example.
Dynamics of the Concept of Pancasila Industrial Relations
It is important to know that industrial relations, which include economic activities such as production and distribution, are included in a container called an economic system. The economic system plays a role in at least three aspects: i) guiding how the economy is run ideally, ii) coordinating how economic activities are carried out, and iii) maintaining harmony between efficiency and justice. As a system, the economic system must also have goals that are strongly influenced by the values it adheres to. The implication is that industrial relations, which have shifted in conception and entered the economic system, will also be greatly influenced by these values.
The new conceptual paradigm of industrial relations places industrial relations as a relationship between actors in the production process (workers, employers) to produce goods and services as a result of business, and the government that protects and has an interest in fostering the national economy. The government's participation offers direction to the course of industrial relations because a clear path is available. However, to answer in which direction that path is needed, values are needed as the fundamental orientation to be achieved. The reliance of industrial relations on Pancasila, which is the crystallization of the values of Indonesian society, thus giving birth to Pancasila industrial relations as one answer to the question of where to take these industrial relations.
The inseparable correlation between the economic system and industrial relations requires an assessment of the Pancasila economic system first before answering how the concept of Pancasila industrial relations works. Hatta explained that the Pancasila economic system is a national economic activity based on the principles of economic democracy or based on kinship. This is certainly in line with the definition of Pancasila industrial relations itself, which is a system of relationships formed between industrial actors (namely workers, employers, and the government) which is based on the values of Pancasila and the 1945 Constitution.
The main foundation of Pancasila industrial relations, as per the definition, is of course the five principles in Pancasila which are interpreted comprehensively-holistically, not in a partial-pragmatic sense. The actors in industrial relations (workers, employers, and the government), in order to make Pancasila industrial relations successful, must be able to realize the orientation of Pancasila industrial relations itself, which is based on the values of Pancasila, as well as the 1945 Constitution. These objectives include the following:
- To make development successful in order to carry out the ideals of the Indonesian nation, namely a just and prosperous society.
- To participate in carrying out world order based on independence, eternal peace, and social justice.
- To create calmness, peace, and order at work as well as business stability.
- To increase production and work productivity.
- To improve the welfare of workers and their degree in accordance with human dignity.
From the explanation of the objectives of industrial relations, it can be seen that the values of Pancasila and the 1945 Constitution are integrated into the entire scope of industrial relations. The application of the values of Pancasila and the 1945 Constitution to the industrial relations sector can create a different climate from the application of other values, such as liberalism and capitalism. Indonesia, with its values, can build its own economic system which also contains industrial relations. By applying these values as its fundamental basis, the orientation will be clear and directed as aspired to by the founders of this nation.
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