Apindo pledges compliance with new wage rules<\/p>\n
JAKARTA (JP): The Association of Indonesian Employers (Apindo)
\nsays none of its 9,000 members are against complying with the
\nminimum wage hikes scheduled to take effect next April.<\/p>\n
"None of our members object to the government's decision to
\nincrease minimum wage levels simultaneously across the country.
\nWe will all comply with the deadline," APINDO Executive Director
\nHadi S. Topobroto said on Saturday.<\/p>\n
His words, however, may not be enough to guarantee total
\ncompliance. Apindo, the only association of employers in the
\ncountry, covers just 9,100 out of an estimated 143,000 companies
\nin the country.<\/p>\n
The government has been campaigning for total compliance by
\ncompanies ever since it announced the hikes in the minimum wages,
\nranging between 11 and 34 percent, in Indonesia's 27 provinces.<\/p>\n
The campaign aim is to warn employers that, based on past
\nexperience, failure to comply could result in the staging of
\nwidespread labor strikes.<\/p>\n
Minimum wage levels are negotiated between local chapters of
\nApindo and the All Indonesian Workers Union (SPSI) in each
\nprovince with the help of the local administrations.<\/p>\n
By regulations, exemptions are permitted for companies that
\nare experiencing financial difficulties but this will mean
\nsubjecting their books to close government inspection.<\/p>\n
Hadi said the increase in the minimum wage was one of the
\ntopics discussed at an Apindo consultative meeting in Balikpapan,
\nEast Kalimantan, on Jan. 28-29. During the meeting,
\nrepresentatives from the 27 provinces said they had no objection
\nto the wage increases set by the government.<\/p>\n
Asked about the Apindo members who were reluctant to observe
\nthe minimum wage levels in the past, Hadi blamed the short notice
\ngiven by the government, which barely gave companies enough time
\nto review their spending plans. Employers need at least three
\nmonths time to prepare, he added.<\/p>\n
Many companies in Jakarta and industrial centers in West Java
\nwere hit by worker strikes in the first two months of 1994
\nbecause employers failed to meet the minimum wage levels that
\nwere raised on Jan 1, 1994. The employers then complained that
\nthey were only given two weeks' notice.<\/p>\n
Hadi said employers could not simply raise the wages
\novernight. "We're not talking about millions of rupiahs here.
\nWe're talking about billions of rupiahs."<\/p>\n
Excuse<\/p>\n
This year there will be no excuse for companies not to comply,
\nhowever, because they have been given ample time.<\/p>\n
While Apindo cannot impose sanctions on its members who
\nresist complying with the labor laws, the government can and
\nwill. Last year, a number of employers were prosecuted.<\/p>\n
Hadi said the Apindo meeting last month also reviewed the
\nprogress of their training programs set up for workers and
\nmanagers alike.<\/p>\n
The project, launched in October, receives funding from the
\nWorld Bank, he said, though he declined to state the amount.<\/p>\n
The meeting agreed to expand the projects now operating in
\nWest Java, East Java and North Sumatra.<\/p>\n
Hadi also lauded a proposal by President Soeharto to move
\nlabor-intensive industries out of Jakarta and its surroundings to
\nprovinces where wages are lower.<\/p>\n
He said the proposal would be discussed at Apindo's next
\nmonthly meeting. (rms)<\/p>",
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"sponsor": "Okusi Associates",
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