Every company that employs 50 or more people must form a bipartite cooperation institution of at least six members. The bipartite institution is composed of an equal number of representatives of both worker representatives and employer representatives who are selected democratically. It must register and provide minutes of the meetings to the Local Manpower Office. It should meet at least once per month or whenever necessary.

The bipartite cooperation institution serves as a forum for communication, consultation and deliberation on labour issues, to increase the productivity and welfare of workers and to ensure business continuity.

The bipartite cooperation institution differs from a union and shall not replace the function of the union. Unions aim to hold employers accountable for the protection of workers’ rights and interests and negotiate with management over terms and conditions of work in the collective bargaining agreement.

A bipartite cooperation institution is a forum where workers and management communicate and consult with each other regarding issues relating to industrial relations, enterprise sustainability and workers’ welfare.

LEGAL REFERENCES:

MANPOWER ACT NO. 13 OF 2003, ART. 106 [UU KETENAGAKERJAAN NO. 13 TAHUN 2003 PASAL 106];
MOMT REGULATION ON PROCEDURES FOR THE BIPARTITE COOPERATION INSTITUTION ESTABLISHMENT AND MEMBERSHIP NO. PER.32/MEN/XII/2008 [PERATURAN MENAKERTRANS TENTANG TATA CARA PEMBENTUKAN DAN SUSUNAN KEANGGOTAAN LEMBAGA KERJA SAMA BIPARTIT NO. PER.32/MEN/XII/2008].