Apindo proposes biennial wage hike<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Association of Indonesian Businessmen (Apindo) proposed to
\nthe government on Wednesday that workers' minimum wages be
\nevaluated every two years rather than every year as is currently
\ndone.<\/p>\n
\"Raising minimum wages every year will only make both the
\nemployers and workers busy discussing them,\" Apindo's vice
\nchairman, Hariadi Sukamdani, said after meeting with President
\nMegawati Soekarnoputri at the State Palace.<\/p>\n
The annual change in the minimum wage requires Apindo, the
\nlabor unions and the ministry of manpower to take a large chunk
\nof time to meet in a tripartite forum every year to discuss the
\nwages for the next year, Hariadi said.<\/p>\n
Apindo's Jakarta branch filed a suit late last year with the
\nState Administrative Court in Jakarta, which later issued an
\ninjunction delaying the implementation of Jakarta's gubernatorial
\ndecree stipulating an increase in the minimum wage from Rp
\n426,250 to Rp 591,266 per month.<\/p>\n
On Jan. 9, 2002, however, the injunction was overturned by the
\ncourt, even though businessmen, who claim to be unable to afford
\nto pay the new minimum wage, insisted on retaining the right to
\nfile an objection with the government to obtain a grace period.<\/p>\n
The wage increase, which also applies to other provinces
\nthroughout the country with an average hike of 30 percent, took
\neffect on Jan. 1, 2002.<\/p>\n
The regional wage increases have stirred problems nationwide
\nas workers went on strike and others scaled back their
\nproductivity.<\/p>\n
The businessmen have warned that the policy will cause massive
\nunemployment as many of the businesses will not be able to afford
\nthe increased wages along with the government's plan to raise
\nfuel prices and electricity tariffs.<\/p>\n
\"If the minimum wages are determined every two years, we will
\nhave more time to thoroughly discuss the wages,\" Hariadi argued.<\/p>\n
Apindo, he said, wants the increase to be adjusted based on
\nthe inflation rate which hovers between 8 percent and 11 percent
\na year.<\/p>\n
In the meeting with the President, Apindo urged the government
\nto review the all labor laws in order to resolve employee and
\nemployer issues, thus creating a business environment more
\nconducive to cooperation.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/apindo-proposes-biennial-wage-hike-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}