Employers reject 'irrational' salary rise demand by workers<\/p>\n
Bambang Nurbianto, The Jakarta Post, Jakarta<\/p>\n
The Indonesian Employers Association (Apindo) rejected on Monday
\nthe demand by Jakarta workers for the minimum wage to be
\nincreased from the current Rp 711,834 to Rp 1.2 million, saying
\nthat the demand was irrational.<\/p>\n
Apindo Secretary-General Jimanto said that according to
\nMinister of Manpower and Transmigration Regulation No. 17\/2005,
\nwhen setting the minimum wage, job market conditions and the
\ncapabilities of employers also needed to be considered.<\/p>\n
\"If we follow the regulation, the Jakarta minimum wage should
\nbe reduced, not increased,\" Jimanto was quoted by Antara as
\nsaying on Monday.<\/p>\n
According to Jimanto, using home industries, such as bakers
\nand cleaning services, in the city as yardsticks, the Jakarta
\nminimum wage should be Rp 500,000 per month, not Rp 711,843.<\/p>\n
He said that not only workers were affected by the fuel price
\nhikes but also employers.<\/p>\n
\"If firms have to pay higher wages, many will go bankrupt
\nsoon,\" he added.<\/p>\n
Meanwhile, Governor Sutiyoso called on the Jakarta
\nRemuneration Council on Monday to soon issue a recommendation on
\nthe issue so as to serve as a reference for him in setting the
\ncity's minimum wage.<\/p>\n
Under the prevailing regulations, the minimum wage is set by
\nthe governor based on a recommendation issued by a tripartite
\ncommittee consisting of workers, employers and the Jakarta Labor
\nAgency.<\/p>\n
Sutiyoso refused to comment on the figure demanded by workers,
\nsaying that the city administration would listen to the arguments
\nput forward by all sides, particularly representatives of workers
\nand employers.<\/p>\n
\"Before making a decision, the city administration needs to
\nlisten to the views of the groups represented on the Jakarta
\nRemuneration Council,\" the governor told journalists at City Hall
\non Monday.<\/p>\n
The All Jakarta Workers Confederation demanded over the
\nweekend that the administration increase the minimum wage for
\n2006 to Rp 1.2 million per month compared to the current Rp
\n711,843.<\/p>\n
In a press statement issued on Saturday, the workers said that
\nthe central government had twice increased fuel prices in 2005,
\nwhile the minimum wage had never been increased.<\/p>\n
The government raised fuel prices in March and October
\nrespectively.<\/p>\n
The workers said that the purchasing power of Jakarta workers
\nhad declined significantly following the recent fuel price
\nincreases as the majority of firms had not increased wages.<\/p>\n
The latest increase in the Jakarta minimum wage took place in
\nNovember 2004, when it was increased from Rp 671,550 to Rp
\n711,843. At that time, the workers' side rejected the decision,
\nsaying the minimum cost of living in the city was around Rp
\n759,953.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/employers-reject-irrational-salary-rise-demand-by-workers-1447893297",
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