Businesspeople urge govt not to meddle with outsourcing<\/p>\n
Ridwan Max Sijabat, The Jakarta Post, Jakarta<\/p>\n
Employers have urged the government not to further complicate the
\ncontract-based and outsourcing employment systems widely
\npracticed in the mining and banking sectors because the country
\nwould be less attractive to foreign investors as a result.<\/p>\n
Indonesian Employers' Association (Apindo) head Sofyan Wanandi
\nsaid on Friday it would be more efficient if the government to
\nentrust the regulation to employers since many companies hit by
\nthe economic crisis in 1997 had not yet recovered.<\/p>\n
\"If the government has to issue regulations on the two forms
\nof employment they should be flexible because the current labor
\nlaw is already complicated,\" he told a seminar on the country's
\nemployment system here.<\/p>\n
Sofyan was responding to Minister of Manpower and
\nTransmigration Jacob Nuwa Wea's plan to issue two ministerial
\ndecrees on the two forms of employment in May.<\/p>\n
He said Apindo had asked its members to provide input to the
\nminister in order to protect employers from possible problems
\nresulting from the enforcement of the decrees.<\/p>\n
The government has planned to regulate the contract-based and
\noutsourcing employment systems because they do not provide legal
\nprotection for workers. Relevant Labor Law No. 13\/2003 makes
\nlittle mention of the practices.<\/p>\n
Many companies in the mining and banking sectors have employed
\nworkers on annual contract basis or have subcontracted a part of
\ntheir core businesses to other, sometimes foreign, companies.<\/p>\n
For the sake of efficiency, many companies have given
\nadministrative jobs to contact-based workers. Efficiency has also
\nled many companies to subcontract some of their main jobs,
\nincluding auditing, raw-material and equipment supplies.<\/p>\n
Hong Kong Bank and Bank Nasional Indonesia have been involved
\nin disputes with workers employed by outsourced companies because
\ntheir wages or conditions were worse than non-outsourced
\nemployees.<\/p>\n
Apindo deputy head Hasanuddin Rachman suggested the government
\nregulate the legal responsibility of companies employing
\ncontract-based workers and those subcontracting their
\nmanufacturing work to outside companies.<\/p>\n
\"These companies have limits of legal responsibility,
\nincluding their obligations in labor dismissals. The amount of
\nseverance pay for dismissed workers should be made in accordance
\nwith their monthly salaries and the financial capability of their
\nemployers or outsourcing companies,\" he said.<\/p>\n
Yanuar Nugroho of the Business Watch Indonesia said
\noutsourcing had weakened industrial relations in companies
\ndeploying the two forms of employment.<\/p>\n
\"Workers' status remains uncertain and they have no bargaining
\npower\". Outsourced workers rarely met their real employers in the
\nworkplace, he said.<\/p>\n
Manpower and Transmigration Ministry director general of
\nindustrial relations Muzni Tambusai said both the labor law and
\nthe criminal code did not mention outsourcing but the practice
\nwas regulated by Articles 64-66 of Law No. 13\/2003, which
\nstipulated that all work subcontracted to other companies must be
\nset out in written contracts.<\/p>\n
\"Subcontracting companies are required to have legal permits
\nand comply with labor laws and can be brought to court if their
\noperation breaks the law,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/businesspeople-urge-govt-not-to-meddle-with-outsourcing-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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