Employers need time to adjust to wage hikes<\/p>\n
JAKARTA (JP): An association representing employers is calling
\non the government to give them more notice next time it hikes the
\nminimum wage levels.<\/p>\n
APINDO, an employers association, said many of its members
\nwere caught unawares by the increases enforced in virtually every
\nprovince across Indonesia since the beginning of the year.<\/p>\n
APINDO chairman Suratmo Hadisuwito said that while employers
\nwere adjusting their cost structure, very often workers refused
\nto wait.<\/p>\n
They would then undertake a labor action, such as strikes, to
\npress for their rights, he said, addressing a hearing with the
\nHouse of Representatives (DPR) on Tuesday.<\/p>\n
\"Employers should be given at least a three-month notice to
\nallow them to adjust to the new minimum wage levels,\" Suratmo
\nsaid.<\/p>\n
He recalled that last November, a tripartite board of
\nemployers, workers and government representatives in West Java
\nagreed to raise the minimum daily wage to Rp 3,800 from Rp 2,600,
\nto be made effective April 1.<\/p>\n
But Minister of Manpower Abdul Latief, who gives the final go-
\nahead on such rulings, decided that the new minimum wage should
\nbe introduced as of Jan. 1.<\/p>\n
The government should take into consideration the interest of
\nemployers as well as workers, he said.<\/p>\n
Latief, a successful businessman before being recruited by
\nPresident Soeharto himself in March of last year, sees himself as
\nthe champion of the workers' cause. He has shown no hesitation in
\nthe past to criticize his former business colleagues for failing
\nto meet the basic rights of workers.<\/p>\n
His move to raise the minimum wage levels in Jakarta and West
\nJava caused some consternation among employers, as they had to
\ndeal with workers going on strike to demand the lawful increase
\nof their wages.<\/p>\n
The government has announced plans to hike the minimum wages
\nin many other provinces beginning on Aug. 1, this time announcing
\nthe new levels well in advance.<\/p>\n
Endorsement<\/p>\n
Responding to APINDO's complaints, Oediyanto of the Armed
\nForces faction agreed that the final endorsement for hiking the
\nminimum wage should be in the hands of the provincial governments
\nand not the minister. This was because the provincial governments
\nhad a better understanding of the conditions of their areas.<\/p>\n
Apindo Deputy Chairman Rienaldo Thamrin, who accompanied
\nSuratno, said that now that the minimum wage levels in most
\nregions had reached, or almost reached, what is needed to meet
\nthe minimum physical requirements, future increases should be
\ntied to productivity.<\/p>\n
When a legislator asked whether APINDO considered the minimum
\nwages humane, Thamrin answered it with a question. The deputy
\nchairman asked if the salary system in the public sector was
\nfair, alluding to the fact that civil servants are among the
\nlowest paid profession in Indonesia.<\/p>\n
\"Sure the minimum wage levels are relatively low ... But the
\nprolonged economic difficulties have also resulted civil
\nservants' pay falling behind the inflation rate,\" he pointed out.<\/p>\n
He also stressed that APINDO has no authority to compel its
\nmembers to abide by the minimum wage regulations.<\/p>\n
\"We're not an enforcement agency. We were created to fight for
\nthe interest of the members that includes creating a conducive
\natmosphere for investors,\" he said.<\/p>\n
Minister of Manpower Abdul Latief said on Tuesday that his
\noffice has filed with complaints against 50 companies in Jakarta
\nfor violating various labor regulations, including on the minimum
\nwage.<\/p>\n
In addition, the courts in Medan (North Sumatra) and Surabaya
\n(East Java) have penalized eight companies for similar
\nviolations.<\/p>\n
The number of offenders has been declining, he said, referring
\nto the fact that there are now greater compliance among companies
\non minimum wage regulations. (rms\/emb)<\/p>",
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"sponsor": "Okusi Associates",
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