Companies told to honor minimum wage ruling<\/p>\n
TANGERANG (JP): All companies here have been reminded of their
\nobligation to abide by the government's ruling governing an
\nincrease in monthly regional minimum wages by an average of 16.7
\npercent as of April 1.<\/p>\n
Head of the Tangerang office of the Ministry of Manpower Apon
\nSuryana said on Saturday that those unable to raise wages were
\nrequired to ask permission for a postponement.<\/p>\n
However, they had to back their requests with a number of
\nrequirements, including the approval of 50 percent of all the
\nfirm's workers and the balance sheet for the last two months,
\nApon said.<\/p>\n
The management should also submit projections for their
\nproduction over the next two years, he said.<\/p>\n
"The maximum duration of any wage increase postponement is
\none year," he said.<\/p>\n
Under the ruling, the basic monthly minimum wage in Greater
\nJakarta, encompassing Jakarta, Bogor, Bekasi and Tangerang, will
\nincrease to Rp 231,000 from Rp 198,000.<\/p>\n
Apon reiterated that those failing to comply with the ruling
\ncould be charged with violating Article 17 of Law No. 14\/1969 on
\nemployment, and face a maximum sentence of three months in jail
\nor a fine of Rp 100,000.<\/p>\n
Kusnanto, deputy secretary to the Tangerang chapter of the
\nFederation of All-Indonesian Workers Unions, said that the
\nplanned increase would be beneficial to workers amid the current
\neconomic crisis regardless of whether the firms' owners agreed
\nwith it or not.<\/p>\n
The government's decision, announced last month, was made with
\nthe aim of arresting the decline in real wages caused by the
\neconomic crisis, where the purchasing power of workers would
\ncontinue to weaken and the labor situation to further deteriorate
\nif such a decision were delayed.<\/p>\n
Many companies have demanded that introduction of the
\ngovernment's policy be postponed, Kusnanto said, but declined to
\ngive details.<\/p>\n
Meanwhile, the government decision governing the wage increase
\nwas warmly welcomed by workers, who hoped that the raise would
\nenable them to catch up with the steadily increasing prices of
\nbasic commodities.<\/p>\n
Sakir, a father of three living in the Pasar Kemis area,
\nhowever, expressed fear that the wage increase would also trigger
\na hike in the prices of necessities.<\/p>\n
"The price of rice is too high at present," said the worker
\nwho lives with his family in a house he rents for Rp 90,000 per
\nmonth.<\/p>\n
Yuyun, a worker in a garment factory, echoed Sakir's remarks,
\nadding that the current security condition was not favorable
\neither. "Riots erupting in many parts of the country scare us,"
\nshe said.<\/p>\n
"If the wage increase is followed by a rise in the prices of
\nessential goods, it will not mean anything," Yuyun said.<\/p>\n
The decision has also drawn mixed reactions from owners of
\ncompanies with some saying they were ready to abide by the ruling
\nand some others saying they would wait and see.<\/p>\n
Ismail, the general manager of tire manufacturer PT Gajah
\nTunggal, said that management did have choices other than raising
\nwages. "But we are ready to raise them anyhow," he said.<\/p>\n
Each of the 12,000 workers employed by the firm already gets
\nabove the Rp 231,000 per month for a five-day working week, he
\nsaid.<\/p>\n
Absori of shoe producer PT Dong Djoe Indonesia also said that
\nthe wage increase was no longer a problem for his company as
\nworkers wages already stand at Rp 250,000 per month, not
\nincluding increments.<\/p>\n
The management of PT Surya Toto Indonesia, a producer of
\nsanitary products, was still in the process of negotiating with
\nits workers.<\/p>\n
"We are still negotiating and no agreement has been reached
\nyet. But in principle we agree to comply with the ruling,"
\nJunaidi, the firm's general manager, said. (41\/hhr)<\/p>",
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