Batam minimum wage hike gets mixed reaction<\/p>\n
Fadli, The Jakarta Post, Batam<\/p>\n
A five percent increase in the minimum wage in Batam has sparked
\nmixed reactions from employers, local authorities, labor unions
\nand workers.<\/p>\n
Netty Herawaty, chairwoman of the local chapter of the
\nFederation of All-Indonesian Workers Union (FSPSI), said she
\nregretted the low hike in the minimum wage that would certainly
\nput workers in a worse condition.<\/p>\n
\"Like previous years, the increase in the minimum wage will
\ncertainly cause a high rise of index prices that will, in turn,
\neffect workers' purchasing power,\" she told The Jakarta Post here
\non Friday.<\/p>\n
Riau Governor Saleh Djasit issued a decree on Thursday to
\nincrease the minimum wage by five percent to Rp 535,000 (US$53.5)
\nfor the 2002 fiscal year from the current Rp 510,000 ($51). The
\nminimum wage prevails only for workers employed less than a year.<\/p>\n
The decree also mandates that workers employed more than two
\nyears were paid Rp 545,7000, while those who have worked for
\nseven years or more will be paid Rp 609,900.<\/p>\n
Netty said the low increase was not real because, besides
\nuncovering the inflation rate, it would not enable workers to
\nmeet their daily needs.<\/p>\n
\"If the government is consistent with the inflation rate of
\naround ten percent this year, it should increase the minimum wage
\nby at least 20 percent to allow workers to enjoy it,\" she said.<\/p>\n
Instead, Netty proposed provisions for housing and
\ntransportation, both of which have raised serious problems for
\nworkers on the island.<\/p>\n
\"Most workers have to spend a part of their monthly wage for
\ntransportation, and have to rent inhumane huts because the costly
\nrent houses on the island,\" he said, citing the fact that most
\nindustries in Batam did not offer housing or dormitory and
\ntransportation for their employees.<\/p>\n
Bambang Yulianto, chairman of the local chapter of the
\nIndonesian Prosperous Labor Union (SBSI), condemned the low hike
\nin the minimum wages which, he said, would bring more suffering
\nto workers on the island.<\/p>\n
\"If the local government is consistent with the Manpower and
\nTransmigration Minister's circular on the monthly minimum wage,
\nthe minimum wage should be set equal with the minimum physical
\nneed of Rp 780,000 on the island,\" he said.<\/p>\n
Minister of Manpower and Transmigration Yacob Nua Wea issued a
\ncircular to all provinces recently, calling on governors to set
\nthe minimum wages at least equal with their own physical need.<\/p>\n
Nasir Harun, chairman of the local chapter of the Indonesian
\nEmployers Association (Apindo) said the increase by five percent
\nwas really a limit of local employers' capability of paying their
\nworkers.<\/p>\n
\"An increase higher than the one set by the governor could
\nlead to massive labor dismissal that will effect not both
\nemployers and workers themselves,\" he said.<\/p>\n
Arifin, chief of the local manpower and transmigration office,
\nappreciated the governor's decree to help maintain the labor
\ncondition and companies' competitiveness.<\/p>\n
\"The government is in a neutral position,\" he said. \"It must
\ngive an adequate attention, not only to workers, but also to
\nemployers and its own interests in a conducive climate for
\ninvestment in the province, including Batam.\"<\/p>",
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