Employers objects the increase of workers' minimum wage<\/p>\n
Annastashya Emmanuelle, The Jakarta Post, Jakarta<\/p>\n
Workers' hopes of enjoying a 38.7 percent increase in the
\nminimum wage here next year will likely not materialize as
\nemployers have rejected the hike.<\/p>\n
The Indonesian Employees Association (Apindo) even threatened
\nto sue Jakarta Governor Sutiyoso at the Jakarta State
\nAdministrative Court for issuing a decree increasing the
\nprovincial minimum wage from Rp 426,250 to Rp 591,266, starting
\nnext year.<\/p>\n
Not only did they reject the decree, they also claimed that
\nthey had never approved the increase during the meeting between
\nlabor unions, employers and officials from the Ministry of
\nManpower.<\/p>\n
Representatives from Apindo and the Jakarta Chamber of
\nCommerce and Industry (Kadin) who were present at the meeting
\nsaid they did not sign any agreement on the proposed increase,
\nand therefore the decision was made without their consent.<\/p>\n
"In the meeting, we stuck to our proposal of Rp 490,000 per
\nmonth, and didn't sign anything. The new minimum wage was
\ndecided entirely by the government and the labor unions," Anita
\nGizelle, from the Jakarta Chamber of Commerce and Industry told
\nemployers from various business sectors in a gathering convened
\nby Apindo and Kadin.<\/p>\n
An executive of the Indonesian Retail Merchants Association
\nsaid last week that employers represented in the city's wage
\ncommittee only approved the steep wage increase due to the
\nlimited time allowed for negotiations with the other parties
\ninvolved.<\/p>\n
According to the gubernatorial decree on the provincial
\nminimum wage, the increase is to take effect on January 2002.<\/p>\n
Labor unions had proposed the sum of Rp 600,000, which they
\narrived at based on results of a basic needs survey.<\/p>\n
According to the deputy chairman of Apkindo, Haryadi
\nSukamdani, the reason for taking the case to court was to stall
\nthe scheduled implementation of the decree early next year, thus
\nbuying time for further negotiation until the court reached a
\nverdict.<\/p>\n
"We will file the suit as soon as possible since January is
\nvery near ... meanwhile, we'll also review our participation in
\nthe committee. As we have often been disregarded, we are
\nconsidering withdrawing from the committee," Haryadi told
\nreporters on the sidelines of the discussion.<\/p>\n
Meanwhile, businesspeople at the gathering agreed to oppose
\nthe new ruling on the grounds that the economy had not yet
\nrecovered.<\/p>\n
"In time, this would kill the manufacturers in Jakarta and
\nwith that comes massive unemployment," said Toto, from the
\nElectric Cable Manufacturers Association.<\/p>\n
Another businessman said that the government was unable to
\naccommodate the interests of all sides and often failed to take
\ninto account the situation of employers.<\/p>\n
"Perhaps this kind of proposal could be considered if the
\ngovernment was willing to postpone the increase in fuel and
\nelectricity rates which will also take place next year," Asima
\nSitorus from the Association of Synthetic Fiber Producers
\ncommented.<\/p>\n
Sutiyoso had earlier rejected the review of the decree on the
\n2002 minimum wage, but allowed employers who could not afford the
\nhike to file an objection and send in their financial reports.<\/p>",
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