– Conflict resolution within the company can be done by mediation, conciliation, or arbitration methods. These three terms are commonly used in the settlement of industrial relations disputes.

Of the three industrial relations dispute settlements, conciliation is usually related to disputes regarding termination of employment or disputes between trade unions/labor unions.

For more details, see the following article which will discuss further the legal basis, objectives and risks of conciliation.

  • Conciliation Is
  • Legal Basis of Conciliation
  • Benefits and Purpose of Conciliation
  • Successful Conciliation Terms
  • Risk of Conciliation

Conciliation Is

Conciliation is an attempt to bring together the wishes of the disputing parties to reach an agreement and resolve the dispute. Some parties interpret conciliation as an effort to bring the disputing parties to resolve the problems between the two parties by negotiation.

Meanwhile, in the Dictionary of Law Complete Edition, conciliation is defined as an attempt to bring together the wishes of the disputing parties in order to reach an agreement to resolve disputes in an amicable way.

Conciliation is usually done to reconcile the disputing parties. This can also be done when you cannot reach an agreement on the purchase price of the house and end up falling out. To avoid this, you can look for housing that has a clear price and ownership. Check the following list of houses in Sidoarjo under Rp. 1 billion for your reference!

Legal Basis of Conciliation

Conciliation law regulations refer to laws on arbitration settlement and alternative dispute resolution and the Industrial Relations Dispute Settlement Law. Here's the explanation: 1. Law of the Republic of Indonesia Number 30 of 1999 concerning Arbitration and Alternative Dispute Resolution

Article 1 paragraph 10 of this law mentions several alternatives to dispute resolution outside the court by way of consultation, negotiation, mediation, conciliation, or expert judgment. Settlement of problems outside the general court process is based on a written agreement from the disputing parties, and this law is intended to prevent dispute resolution from protracting. Republic of Indonesia Law No 2 of 2004 concerning Industrial Relations Disputes (PHI)

In this law conciliation is mentioned as one of the settlements of industrial relations disputes. Article 1 paragraph 13 of this Law explains the definition of conciliation. then in paragraph 14 explains the requirements for a conciliator who is in charge of conducting conciliation and is obliged to provide written recommendations to the disputing parties. Then in articles 17 to 28 of the IRC Law it is explained regarding the procedure for settling disputes through conciliation. APS through conciliation can be found in several regulations in Indonesia. One of them is Law Number 2 of 2004 which specifically defines conciliation in the realm of industrial relations, which is regulated in Article 1 paragraph 13 which defines industrial relations conciliation as follows: disputes between trade unions/labor unions only within one company through deliberations mediated by a person or a neutral conciliator”. In addition, Law 2/2004 also explains the procedures and timeframes in practice for using conciliation, especially in industrial relations disputes. This law also explains the meaning of conciliator in Article 1 paragraph 14 which states: "Industrial Relations conciliator, hereinafter referred to as conciliator, is one or more persons who fulfill the requirements as conciliators determined by the Minister, who is tasked with carrying out conciliation and is obliged to provide written recommendations to the disputing parties to resolve disputes over interests, disputes over termination of employment or disputes between trade unions/labor unions within only one company”. Conciliation in the settlement of Industrial Relations Disputes Settlement is not much different from conciliation in general. The difference is only in the disputes handled. If the conciliation reaches an agreement, then the parties sign a collective agreement made by the conciliator which will then be registered with the Industrial Relations Court at the District Court in the area where the parties entered into the collective agreement.

Benefits and Purpose of Conciliation

Conciliation aims to resolve conflicts that are very beneficial for all parties. There are various kinds of benefits that can be obtained through this conciliation process. Some of the benefits of conciliation are as follows:

1. Opportunity to Resolve Disputes Peacefully

Settlement of disputes through conciliation usually has the opportunity to be resolved in a peaceful or amicable way. This is because the dispute resolution process does not go through the courts. In addition, if the parties concerned reach peace, the peace agreement signed by the parties concerned is a legally binding contract.

Conciliation in this conciliation meeting can be in the form of an apology, change of policies and habits, re-examining work procedures, re-employment, monetary compensation, and so on.

2. The decision is not binding on the parties

A conciliator (third party) actively provides advice or opinions to help the parties resolve disputes. However, the parties to the dispute have the freedom to decide or reject the terms of the proposed dispute settlement.

3. Flexible

Conciliation meetings usually consist of two stages, namely the written stage and the oral stage. In the first stage the dispute is described in writing and submitted to the conciliation body, then this body will hear oral statements from the parties.

Successful Conciliation Terms

The process and control of conflict by means of conciliation can be successful if several conditions are met. Those conditions are: 1. The parties have equal bargaining power. 2. The parties pay attention to the relationship in the future. There is an urgency or time limit to complete.4. The parties do not have long-standing and deep animosity. If the parties have supporters, they don't have a lot of expectations or demands, but can be controlled. Setting a precedent or defending a right is not more important than solving an urgent problem. If the parties are in a litigation process, the interests of other actors, such as lawyers and guarantors will not be treated more favorably than mediation.

Risk of Conciliation

One of the goals of conciliation is to find peace between the disputing parties. Conciliation is related to the settlement of interest disputes, layoff disputes or disputes between trade unions/labor unions within a company through consensus deliberations mediated by one or more neutral conciliators. In this case the authority of conciliation is limited to interest disputes, layoff disputes or disputes between unions workers, and not related to rights disputes. If in a conciliation meeting the parties to the dispute do not reach an agreement, then the conciliator can issue a written recommendation. In addition, the nature of this recommendation is only a recommendation and both parties may not implement it. Then, if this recommendation is rejected, either party can file a lawsuit at the industrial relations court. However, if an agreement is reached a collective agreement will be signed by the parties and registered with the industrial relations court to obtain proof of registration.

That was the definition of conciliation, which is equipped with a legal basis, purpose, benefits, and risks, which you can learn if you want to do conciliation.