Arrangements of Employer-Labor Conflicts With Game Theory: Implementation of Islamic Ethic Value

Abstract

Employer-labor conflicts are sometimes eternal and challenging to solve. Game theory is one of the essential ideas in settling these conflicts. Furthermore, employer-labor interactions in conflict situations are strategic. In case the employer-labor relationship is noncooperative, taking place only once, both parties are involved in a prisoner’s dilemma situation. In cooperative game theory, the players work together to win the game. Organizational management needs to consider strategic behavior, built-in cooperative games, effective and efficient collaboration between workers and employers. This study examines employer-labor conflict resolution with game theory. It incorporates Islamic ethical values using qualitative research methods. Cooperative games built on employer-labor relations derive from the brotherhood principles (ukhuwah), justice (‘adl), and goodness (ihsan) that maximizes cooperation and prevent conflicts.