End minimum wage system, says Union<\/p>\n
CIANJUR, West Java (JP): The splinter faction of the
\nFederation of All Indonesian Workers Union (FSPSI Reformasi) will
\nfight for replacement of the monthly minimum wage with a market-
\nbased remuneration system, a newly elected executive said on
\nWednesday.<\/p>\n
Secretary-general Mohammad Rodja argued the minimum wage
\napproach should be discontinued because it had failed to improve
\nworkers' welfare.<\/p>\n
\"What have workers gained from the economic growth of around 7
\npercent during the last three decades? They remain poor and
\nbackward. And now, they are part of a vulnerable group worst hit
\nby the crisis,\" he told The Jakarta Post after the closing
\nceremony of the new labor union's four-day congress here.<\/p>\n
To the distress of the original FSPSI, the government has
\nrecognized FSPSI Reformasi, citing the International Labor
\nOrganization's convention on freedom of association, which has
\nbeen ratified.<\/p>\n
The splinter faction is supported by 11 out of 13 sectoral
\nunions.<\/p>\n
Rodja said workers' purchasing power had drastically weakened
\nfollowing skyrocketing prices of basic commodities.<\/p>\n
Minimum monthly wages vary according to area. The lowest is Rp
\n122,500 (Southeast Sulawesi, East Nusa Tenggara and Yogyakarta),
\nand the highest Rp 270,000 (Batam).<\/p>\n
Rodja said FSPSI Reformasi would also seek for labor costs to
\nreach at least 20 percent of companies' production costs.<\/p>\n
The matter -- which he said would have to be raised in
\nnegotiations with management on drafting collective labor
\nagreements -- would help improve workers' skills and income.<\/p>\n
\"Most workers cannot develop their career and improve their
\nskills because their companies have allocated their labor costs
\nat only about 5 percent of their production cost.\"<\/p>\n
It is ironic that minimum wages in Indonesia are far lower
\nthan those in Malaysia, Singapore, the Philippines, Thailand and
\nChina, Rodja added.<\/p>\n
This year should be the last for the minimum wage system, at
\nleast in multinational corporations and joint venture companies.<\/p>\n
He characterized it as unfair that multinationals such as
\nhotels and manufacturing firms were still implementing the
\nminimum wage system when they paid their workers overseas far
\nhigher remuneration.<\/p>\n
Rodja, outgoing deputy chairman of the trade union in the
\ntextile and leather sector, continued that FSPSI Reformasi would
\nalso set up cooperatives whose short-term program would help
\nsupply basic commodities to workers.<\/p>\n
The federation recently signed a cooperation agreement with
\nthe State Logistics Agency (Bulog) to allow the cooperatives to
\ndirectly supply basic commodities from Bulog to workers.<\/p>\n
Rodja said the federation would also fight to reform the
\nsocial security program, run by state-owned PT Jamsostek, to
\nprovide maximum benefit to workers.<\/p>\n
\"We want the company and the social security program to be
\nmanaged by a tripartite management representing workers, employ
\ners and the government.\" He said PT Jamsostek could not be
\ntreated the way the government handled other state-owned
\ncompanies, which were inevitably oriented to make profits,
\nbecause its assets came from insurance premiums paid by workers.<\/p>\n
\"The company's profit, therefore, should not be given to the
\ngovernment, but be returned to accumulate its assets to improve
\nbenefits for workers.\"<\/p>\n
He said a victim of a work-related accident who suffered
\ndebilitating injuries should receive compensation of Rp 75
\nmillion, instead of the usual Rp 1.5 million to Rp 2
\nmillion. (rms)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/end-minimum-wage-system-says-union-1447893297",
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