Labor relations must adapt to the changing labor market
Minister of Labor, Yassierli, emphasized that labor relations must constantly adapt to changes in the labor market to ensure business continuity and improve employee well-being.
Yassierli made this statement during the presentation of the Collective Labour Agreement (CLA) of PT Pegadaian (Persero) in Jakarta on July 29, 2026.
According to Yassierli, the CLA is an important instrument for building healthy labor relations because it serves as a forum for agreement between management and unions regarding the regulation of labor relations.
“The CLA is not just an administrative document, but a foundation for building healthy labor relations. It embodies a shared commitment between the company and the employees to create a harmonious working relationship,” stated Yassierli.
He stated that good labor relations form the basis for creating a stable, harmonious, and competitive working environment through social dialogue, open communication, and continuous cooperation between the company and the employees.
“The labor market is constantly undergoing rapid changes. Therefore, labor relations must also be able to adapt to the various dynamics that occur,” he said.
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Yassierli explained that technological developments, automation, and digitalization have changed work patterns and increased the need for new competencies. Companies and employees must therefore be able to adapt in order to meet the challenges of a constantly evolving industry.
According to him, success in dealing with changes in the labor market is determined not only by improving the skills of the staff but also by the quality of the relationship between management and employees. Mature labor relations create space for cooperation, stimulate innovation, and strengthen a company’s competitiveness.
He added that improving staff competencies must go hand in hand with the development of favorable labor relations. Companies must offer employees the opportunity to develop their skills through training and further education, tailored to the needs of the labor market.
In an effort to create better labor relations, the Ministry of Labor continues to encourage the implementation of a framework for the development of mature labor relations as a guideline for companies.
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This framework outlines the phases in the development of labor relations, from meeting legal requirements to a transformative phase characterized by cooperation, innovation, and strong partnerships between companies and employees.
In the transformative phase, companies no longer view the fulfillment of employee rights as merely an obligation, but as an investment in the sustainability of the enterprise. Moreover, trade unions play a strategic role in creating harmonious labor relations and supporting better business performance.
Yassierli hopes that management and trade unions will continue to maintain favorable labor relations through mutually supportive partnerships, so that these practices can serve as an example for other companies in building adaptive and inclusive labor relations.
“Ideal labor relations are not only those with minimal conflict, but relationships that foster collaboration, innovation, and added value for both the company and the employees,” concluded Yassierli. ***rel
