The Impact of the Omnibus Law on Industrial Relations in Indonesia During the Covid-19 Pandemic: A Qualitative Analysis

Abstract

The Covid-19 pandemic since 2020 until now has had a tremendous impact on socio-economic life in Indonesia. Many companies have laid off their employees on the pretext of a decrease in company production affected by the Covid-19 pandemic. On the one hand, the Indonesian government in October 2020 has passed the Omnibus Law which is still controversial. This study aims to explain the industrial pattern in handling employment after the enactment of the Omnibus Law during the Covid-19 pandemic. By using eight informants as research subjects through purposive sampling techniques, this qualitative study collected data through in-depth interviews related to the topic. The results of the study show that before the enactment of the Omnibus Law during the pandemic, the conditions focused on the problem of "rights disputes" including the payroll system, deductions, and employee SP3 which were considered unfair. However, after the enactment of the Omnibus Law, the problem refers more to "interest disputes" between companies and workers to defend their respective interests. This finding has significance for policy makers and practitioners in industrial relations. Governments and companies must understand the transition from rights disputes to interests disputes to develop more inclusive policies and minimize conflicts. Companies must also be more transparent in managing human resources and paying attention to workers' rights to improve fairness and stability of the industry.