Govt firm on minimum wage policy<\/p>\n
PADANG, West Sumatra (JP): Unmoved by waves of protest, the
\ngovernment said yesterday it won't review its policy of raising
\nthe regional minimum standard by 10.6 percent as of April 1.<\/p>\n
Minister of Manpower Abdul Latief made it clear that the
\ngovernment has no intention of negotiating a compromise with
\nemployers on the issue.<\/p>\n
\"The decree (on the pay hikes) must be upheld. There is no
\ncompromise,\" he told journalists here yesterday.<\/p>\n
The government's regulation on the new minimum wage standard
\nhas been met with strong opposition, mainly from labor intensive
\nsmall and medium-sized companies.<\/p>\n
They fear that the policy will produce high production costs
\nwhich could lead them to eventual bankruptcy.<\/p>\n
Tycoons Sofyan Wanandi and Aburizal Bakrie have proposed that
\nthe government be flexible, allowing small companies one or two
\nyears before they are required to implement the regulation.<\/p>\n
Sofyan, president of the Gemala Group, called on the
\ngovernment and small-scale companies to sit down and find the
\nbest solution to the problem.<\/p>\n
About 300 small and medium-scale businesses -- mostly textile,
\ngarment, footwear, electronic and furniture companies -- have
\nthreatened to file a lawsuit against the manpower minister if the
\nnew ruling is not reviewed.<\/p>\n
They also demanded that the monthly wage for permanent workers
\naccount for 26 working days, instead of the 30 working days
\nstipulated in the decree.<\/p>\n
Aburizal, chairman of the Indonesian Chamber of Commerce and
\nIndustry, said Wednesday that the government and employers should
\nhold a dialog to seek a peaceful solution to the dispute.<\/p>\n
He said the government should hear what the small and medium-
\nsize companies have to say about the new ruling. The government
\nshould enforce the regulation in a fair manner, he added.<\/p>\n
Latief called on companies unable to pay their workers in
\naccordance with the government's new regulation to request an
\nexemption.<\/p>\n
He criticized the employers who have threatened to sue the
\nminister as a way of settling the dispute. The move will only
\nworsen the situation, he argued.<\/p>\n
\"It is time for employers to avoid confrontation with the
\ngovernment, because the problem can be solved at the negotiating
\ntable,\" he said.<\/p>\n
He added that the government has attempted to be fair by
\noffering financially troubled companies a chance to postpone
\nimplementing the regulation if they have acceptable reasons.<\/p>\n
According to Aburizal, out of 160,000 registered companies,
\n387 have filed request for postponement. Of these, four have been
\nturned down, one accepted and the others were still being
\nprocessed.<\/p>\n
The government has raised the daily minimum wages across the
\ncountry by 10.6 percent, which came into effect as of April 1,
\n1996.<\/p>\n
The 1969 Labor Law states that employers failing to pay their
\nworkers the government-set minimum wage are liable to three-
\nmonths' imprisonment or a Rp 100,000 fine.<\/p>\n
Meanwhile, Director General for Industrial Relations and Labor
\nStandards Suwarto called on the Association of Indonesian Textile
\nCompanies (API) to abide by a recent agreement on a minimum-wage
\ndelay between the association and the government.<\/p>\n
\"API should stick to the agreement, and those financially
\nunable to implement the ruling may seek exemption from the
\nruling,\" he said. (rms)<\/p>\n
Editorial -- Page 4<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/govt-firm-on-minimum-wage-policy-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }