Government rejects workers' demands on ministerial decrees<\/p>\n
JAKARTA (JP): President Abdurrahman Wahid turned down on
\nTuesday the demands of the Federation of All Indonesian Workers
\nUnion (FSPSI) to nullify two controversial ministerial decrees on
\nlabor issues but agreed to give some concessions to protect
\nworkers rights.<\/p>\n
Citing investors concerns, the President told the Union
\nleaders, that he was fully supportive of the two decisions of the
\nMinister of Manpower and Transmigration Al-Hilal Hamdi which
\nnegated employers' obligations to pay severance and service
\npayment to resigning and retiring workers.<\/p>\n
The Union chairman Hikayat Atika Karwa quoted the President as
\nsaying that the government would not bow to the workers' demands
\nto revoke the minister's Decrees No. 78 and No. 111, issued this
\nyear, for the sake of maintaining a conducive investment climate
\nin the country.<\/p>\n
The President said the two decrees had to be issued to replace
\nprevious ministerial Decree No. 150 following complaints from
\ninvestors, which the President described as counterproductive to
\nattracting private investment.<\/p>\n
However the President also allowed provinces which had
\nimplemented the Decree No. 150 to continue the policy if it was
\ndeemed necessary.<\/p>\n
"In principle the government still sticks to the two decrees
\nand refuses to revert to Decree No. 150," said Hikayat after the
\nmeeting.<\/p>\n
The source of the dispute derives from the decree No. 150,
\nwhich was issued by then minister of manpower Bomer Pasaribu in
\nJune last year.<\/p>\n
The decree obliged employers to pay a severance compensation
\nand a merit or service payment to the sacked employees. According
\nto the decree the employees are entitled to receive 100 percent
\nof their gross monthly wage for each year they have worked at the
\ncompany. Those who have worked over five years will receive 600
\npercent of their wages.<\/p>\n
The workers also have the right to receive service payment,
\nwhich totals 200 percent of their gross monthly salary for those
\nwho have worked up to six years.<\/p>\n
Meanwhile retiring workers are entitled to a service allowance
\nin line with their working period.<\/p>\n
Bomer's successor, Al-Hilal annulled the decree following
\npressure from investors. In his Decree No. 78, issued in April,
\nthe amount of the severance payment is smaller and there is no
\nobligation for companies to give service payment to resigning
\nworkers.<\/p>\n
Decree No. 111, stipulates that companies are required to obey
\ntheir collective labor agreement if the amount of compensation is
\nbigger than regulated in the decree.<\/p>\n
Demo<\/p>\n
While Hikayat was meeting with the President, thousands of
\nworkers of the industrial town of Sidoarjo, adjacent to the East
\nJava capital of Surabaya, took to the streets again on Tuesday
\ndemanding that Decree No. 78 be revoked and the reinstatement of
\nDecree No. 150. They staged a similar protest on Monday.<\/p>\n
The workers were from various organizations, including All
\nIndonesian Workers Solidarity Party (FSPSI) and the Indonesian
\nProsperity Trade Union (SBSI) and Indonesian Workers Front of
\nStruggle (FNPBI).<\/p>\n
Several incidents spiced the street demonstration. The
\nprotesters threw stones at company buildings when encouraging the
\ncompanies' workers to join them.<\/p>\n
A minibus belonging to PT Trias Sentosa was ransacked and the
\nfence of PT Panggung Elektronik was destroyed, forcing the
\nsecurity officers to alert demonstrators by firing warning shots.<\/p>\n
Comr. Soedirman, chief of Surabaya Taman Police, which
\noversees, among others, Sidoarjo said that some 500 personnel
\nwere deployed to anticipate possible rioting.<\/p>\n
"We blocked the Waru traffic circle to prevent protesters from
\nentering Surabaya, and we succeeded." (prb\/nur)<\/p>",
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