City minimum wage up Rp 40,000<\/p>\n
Bambang Nurbianto, The Jakarta Post, Jakarta<\/p>\n
The Jakarta minimum wage is to increase by 6.3 percent next year
\nfrom this year's Rp 631,000 (US$75.1) to Rp 671,550. The increase
\nis expected to be effective starting Jan. 1.<\/p>\n
Head of the Jakarta Manpower and Transmigration Agency Ali
\nZubeir told the press at City Hall on Thursday that the increase
\nin the minimum wage was stipulated in Gubernatorial Decree No.
\n3654\/2003 issued on Oct. 31.<\/p>\n
Ali said the governor's decision was based on the proposal of
\nthe City Wage and Social Safety Committee, which is authorized to
\nstudy wage issues in the city.<\/p>\n
Members of the committee include union representatives,
\nemployers and city administration officials.<\/p>\n
Ali said the committee had held several meetings to discuss
\nthe city minimum wage since April 30. He, however, did not go
\ninto details about how the figure of 6.3 percent was reached.<\/p>\n
The new minimum wage does not include weekly transportation
\nand meal allowances paid by the companies every week.<\/p>\n
In the decree, the governor also prohibits companies from
\ncutting wages which currently exceed the new minimum wage in the
\ncity.<\/p>\n
He said that the city administration still gives the
\nopportunity to companies which want to propose a delay in the
\nimplementation of the new minimum wage.<\/p>\n
Ali said those companies could submit a proposal to delay the
\nimplementation to the Jakarta Manpower and Transmigration Agency
\nno later than Dec. 21.<\/p>\n
He said companies should enclose a number of documents to
\nsupport their request for a delay.<\/p>\n
First, the proposal should enclose a letter of agreement from
\nunion workers. If there is no union at the company, the proposal
\nshould be approved by at least 50 percent of workers who receive
\nthe minimum wage.<\/p>\n
Second, a copy of the company's founding certificate. This
\nrequirement is only for companies that employ over 100 employees.<\/p>\n
Third, data about production and sales for last two years and
\nproduction and sales forecasts for the next two years.<\/p>\n
Fourth, data about the salary scale based on position.<\/p>\n
Fifth, data on the number of employees who would be affected
\nby the delay.<\/p>\n
And sixth, the readiness of the company to pay their employees
\nbased on the new wage schemes after the grace period expires.<\/p>\n
The company may delay the implementation of the minimum wage
\nfor up to one year.<\/p>\n
Meanwhile, a number of labor unions in the city expressed
\ndisappointment with the increase, saying that the figure would
\nnot cover the basic needs of workers in the city.<\/p>\n
In their statement, the unions pointed out that based on the
\nresult of a survey conducted by the unions' wage commission, the
\nminimum wage for Jakarta should be Rp 722,356.<\/p>\n
The unions also demanded the implementation of the minimum
\nwage according to the business sector, based on a recommendation
\nin a 1999 manpower ministry decree on the minimum wage in
\nrelation to the business sector.<\/p>\n
According to the unions' calculation, the workers in the
\nmetal, electronics, electric and automotive industry should
\nreceive a minimum wage of Rp 758,476, while workers in the
\nchemical, energy and mining sector should receive Rp 845,992.
\nWorkers in the pharmacy and health sector should receive 5
\npercent more than the general minimal wage. And workers in the
\ntextile and leather sector should receive Rp 758,476.<\/p>\n
The workers threaten to hold a mass demonstration to press for
\ntheir demands.<\/p>",
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