Employment URC Team Innovation Accelerates Industrial Relations Dispute Resolution in Gresik

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Gresik, Indonesia — The Employment Rapid Response Unit (URC) developed by the Gresik Regency Government has proven effective in accelerating the early detection and mitigation of industrial relations disputes. A study conducted by Moch Raffy Syawal, Agus Sukristyanto, and Endang Indartuti from Universitas 17 Agustus 1945 Surabaya found that the proactive approach implemented by the Employment URC Team significantly improves the resolution of labor disputes while preventing workplace conflicts from escalating into formal legal cases. The findings highlight the URC Team as an innovative model of public service that strengthens harmonious industrial relations in one of Indonesia's largest industrial regions.

Indonesia has one of the largest workforces in Southeast Asia, making employment disputes an ongoing challenge for both government and industry. National employment data show a continuous increase in layoffs over recent years, reflecting the growing complexity of labor relations. Gresik Regency faces similar conditions. Home to more than 5,000 companies and approximately 300,000 industrial workers, the regency recorded a steady rise in industrial relations disputes, increasing from 50 cases in 2023 to 66 cases in 2024, and reaching 84 cases in 2025. Most disputes involved layoffs, followed by conflicts over workers' rights, employment interests, and disagreements between labor unions.

Responding to this growing trend, the Gresik Regency Manpower Office introduced the Employment URC Team as an innovative public service initiative. Unlike conventional dispute resolution mechanisms that depend on formal written reports and lengthy administrative procedures, the URC Team works proactively by detecting early signs of conflict, conducting rapid field verification, facilitating non-litigation mediation, and documenting every stage of dispute resolution. The primary objective is to resolve conflicts before they develop into formal industrial disputes requiring judicial intervention.

The study employed a descriptive qualitative case study conducted at the Gresik Regency Manpower Office. Data were collected through in-depth interviews with eight key informants, including government officials, industrial relations mediators, labor union representatives, and company management representatives. Field observations and document analysis complemented the interviews. The researchers evaluated the innovation using Everett M. Rogers' Diffusion of Innovation Theory, which measures innovation through five attributes: relative advantage, compatibility, complexity, trialability, and observability.

The findings demonstrate that the Employment URC Team performs significantly better than conventional dispute resolution mechanisms. The team can respond to potential industrial conflicts within 24 hours, while traditional administrative procedures generally require 14 to 30 days before field intervention begins. Because the URC Team operates proactively without waiting for formal complaints, dispute resolution becomes substantially faster. During 2025, 51 cases, or 60.7 percent of all industrial disputes, were successfully resolved during the early detection stage before escalating into formal legal disputes. The study also reported zero lost working days caused by industrial conflicts throughout the year.

Using Rogers' Diffusion of Innovation framework, the researchers found that the Employment URC Team achieved very high scores in both relative advantage and compatibility. The innovation offers clear benefits compared with previous approaches while remaining fully aligned with existing labor regulations and Indonesia's consensus-based industrial relations culture. Easy public access through WhatsApp and dedicated hotline services enables workers and employers to report potential conflicts quickly. In addition, more than 85 percent of stakeholders accepted the innovation without experiencing significant organizational or cultural resistance.

The research also shows that the URC Team was developed through several implementation phases before becoming a standardized service. Its dispute resolution success rate steadily improved from approximately 71 percent during the initial trial phase to more than 90 percent during the evaluation and standardization stage. This gradual improvement reflects continuous organizational learning and refinement of operational procedures. Public awareness of the program has also grown substantially, with 92 percent of stakeholders recognizing the Employment URC Team and its services, accelerating the spread and acceptance of the innovation throughout Gresik's industrial community.

Despite these achievements, the study identifies several challenges that still need to be addressed. The limited number of certified mediators compared to the large number of companies and workers restricts the team's capacity for comprehensive early detection. Other challenges include limited operational funding, the absence of an integrated digital conflict management information system, resistance from some small and medium-sized enterprises, and the team's relatively weak legal foundation, which currently relies only on a Head of Service Decree rather than a stronger regional regulation.

According to Moch Raffy Syawal, Agus Sukristyanto, and Endang Indartuti from Universitas 17 Agustus 1945 Surabaya, the Employment URC Team's success depends not only on rapid response but also on strong leadership commitment, regulatory support, experienced mediators, and effective collaboration among government institutions, employers, and labor unions. The researchers recommend strengthening the team's legal basis through a Regent Regulation and developing an integrated digital Conflict Management Information System connected to the National Employment Information System (SISNAKER) to ensure the long-term sustainability of this innovation.

Overall, the study demonstrates that proactive public service innovation can become an effective strategy for preventing industrial relations disputes before they escalate. By emphasizing rapid response, collaboration, and non-litigation mediation, the Employment URC Team not only reduces the likelihood of prolonged labor conflicts but also contributes to a more stable investment climate, healthier industrial relations, and greater productivity within Indonesia's manufacturing sector.

Author Profile

Moch Raffy Syawal, Agus Sukristyanto, and Endang Indartuti
Universitas 17 Agustus 1945 Surabaya, Indonesia.

Research Source

Article Title: Local Government Innovation: The Employment Rapid Response Unit (URC) Team in Early Detection and Risk Mitigation of Industrial Relations Disputes in Gresik Regency
Journal: East Asian Journal of Multidisciplinary Research (EAJMR), Vol. 5, No. 7, 2026.

DOI: https://doi.org/10.55927/eajmr.v5i7.215

Journal Link: https://journaleajmr.my.id/index.php/eajmr/article/view/215

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