Fri, 15 Aug 2008
Jakarta, (ANTARA News) - Workers in Batam in Riau Islands province and Surabaya in East Java on Thursday demonstrated in front of their regional legislative councils against violations of the law in the implementation of the so-called "out-sourcing" system in manpower recruitment and even against the system itself.

In Batam some 1,600 workers coordinated by the Federation of Indonesian Metal Workers` Unions (FSPMI) came to the Batam city administration and legislative council buildings to protest against manpower recruitment companies whose practices breached the legal provisions on outsourcing.

"The government must take firm action against and correct outsourcing practices that violate the manpower law," the chairman of FSPMI`s Batam branch, Nurhamli, said.

He said most manpower recruitment companies in Batam placed workers in jobs directly linked with production processes in violation of Law No 13 of 2003 on manpower.

Article 66 of the law explicitly forbade the employment of workers supplied by manpower recruitment companies in jobs constituting the employer`s main activity or directly related to production processes. Such workers could legally only be made to serve in supporting activities or positions not directly related to a production process, he said.

According to data collected by SPMI, some 150,000 workers in Batam had been placed by recruitment companies and almost all of the workers were working as operators and technicians.

The manpower recruitment companies adopted attitdes or applied rules that greatly disadvantaged workers. Not only were the workers never assured of the permanence of their jobs, they also had to give 20 percent of their monthly incomes to the manpower recruitment companies.

In Surabaya, hundreds of workers, likewise grouped in FSPMI, rallied outside the East Java Provincial Legislative Assembly to demand the scrapping of the outsourcing system.

They asked the assembly to urge the East Java governor to order district adminstration chiefs in the province to revoke outsourcing licences granted to manpower recruitment companies and liquidate the regional manpower office for failing to act against violations of the legal provisions on outsouring.

The chairman of FSPMI`s East Java chapter, Pujianto, said with the introduction of the outsourcing system, employers increasingly tended to prefer hiring manpower on a casual, daily or contractual basis.

"The purpose of the outsourcing system is to enable businessmen to reap maximum profits by keeping down costs without regard of the workers` fate. Workers can thereby be paid the lowest possible wages, without concern for their welfare and the need to deal with workers` unions," Pujianto said. (*)


Fri, 15 Aug 2008
From: JakChat
Comment by chewwyUK
Interesting that the outsourcing issue is kicking off again. Maybe the unions know that one of the first things SBY's government will try and change are the manpower outsourcing regulations. Remember they tried a few years ago but unfortunately he backed down.

While the workers like to blame the the outsourcing companies it's the their client that decides what jobs will be outsourced. I have talked with a good few outsourcing companies in Jakarta and can tell you that these guys are hurting. They have been pushed so hard on margins that most of them can't afforded to run their payroll and many of them don't pay tax on time.

Something really needs to change here. The government and workers must accept fair outsourcing labor laws. In return the government should keep a close eye on all outsourcing companies to ensure that the outsourced staff are being paid on time, have minimum wage requirements and are being treated fairly.

To compete in the manufacturing markets Indonesia MUST have a more fluid workforce


Fri, 15 Aug 2008
From: JakChat
Comment by KuKuKaChu
Originally Posted By: chewwyUK
To compete in the manufacturing markets Indonesia MUST have a more fluid workforce

i certainly agree with all you say, however, unions may well argue that fluid workforces are not possible in the absence of a system of social security to fill in for breaks in employment.


Fri, 15 Aug 2008
From: JakChat
Comment by Roy's Hair
outsourcers in this country can absolve their responsibility for their minimum wage obligations, rendering the whole minimum wage concept risible here. Outsourcing is pure evil in this country- which needs real unions by the way.


Fri, 15 Aug 2008
From: JakChat
Comment by Roy's Hair
The workforce here is indeed fluid. They've been put in life's blender and liquidized.



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