Jurnal Hukum Prasada, Vol. 7, No. 2, September 2020, pp. 66-72 P ISSN: 2337-759X E ISSN: 2548-4524 https://ejournal.warmadewa.ac.id/index.php/prasada The Urgency Mechanism of Industrial Relation’s Settle- ment to Support the Business Climate that Equitable for Workers Agisa Tri Handias* and Muhamad Azhar Master of Law, Faculty of Law, Diponegoro University *email: agisatri@gmail.com Published: 15/09/2020 How to cite (in APA style): Handidas, A, T., Azhar, M. (2020). The Urgency Mechanism of Industrial Relation’s Settlement to Support the Business Climate that Equitable for Workers. Jurnal Hukum Prasada, 7(2), 66-72. doi: https://doi.org/10.22225/ jhp.7.2.2116.66-72 Abstract Indonesia has been developed in economical sector, especially in the employment section. Along with the times, there has occur and grown up and many problems about employment matter in which there many more employment relationship works without parity between the responsibility and the rights from the employer to the employee/ workers. As the consequence of the inclusion of business competition climate, it caused the businessman look for ways how to maximize the production output by reducing the costs. This circumstance has influenced the workers right becomes ruled out and then arises statement of workers to claim their pending rights. This study aims to find out the industrial relationship matter related to the business competition climate, and to find out the settlement mechanism of industrial relationship conflict based on regulation number 2 year of 2004 about settlement of industrial relationship matter. This study used juridical normative method. This juridical research is carried out towards references object. Moreover, this study applied primary, secondary, and tertiary legal material. The result of the study showed that the impact of employment matter was more complicated. That is why the labor problems should be seen as the industrial relation matter. This matter also comes as the consequence of Indonesia as the Welfare State where the State should take a part in every part of social life. This means that the State has important role to solve the problem of industrial relationship. Keyword: Businessman; Business Competition Climate; Industrial Relation Matters; Worker Jurnal Hukum PRASADA E-ISSN 2548-4524 CC-BY-SA 4.0 License Page 66 INTRODUCTION The unitary state of Republic of Indonesia is a country that stand to the law. This matter has been clearly written in the Fundamental Constitution of the Republic of Indonesia year of 1945 article 1 section (3). As the consequence of a state law, The State must be able to apply the equitable regulations that based on to the Human Rights toward all people. Moreover, The State should take part to manage every community life. The employment matter is included into this. As the aftermath, there were some changes related to the employment regulation or labour law. At first, the labour law is included to the civil law, but then change to public law aspect in which is meant to The State Administrative Law. The recent of modern industrial era is absolutely affected the business competition that has been more tight and sharp. This condition continuously brings problems over employment, especially in the work relation between employer and employee. Moreover, the problems of employment that has more widespread and complicated must be consider as industrial relation conflict, and also the settlement of it. There some different opinion