Govt prepares regulations on wages<\/p>\n
Ridwan Max Sijabat, The Jakarta Post, Jakarta<\/p>\n
The government will soon issue two regulations on remuneration
\nfor the formal sector and on industrial relations in the informal
\nsector, a manpower official said on Tuesday.<\/p>\n
Muzni Tambusai, the director-general for industrial relations
\nat the Ministry of Manpower and Transmigration, said one
\ngovernment regulation would introduce three remuneration
\ncriteria, while the other would regulate a social security scheme
\nand provide for simple industrial relations in the informal
\nsector.<\/p>\n
The remuneration schemes in the formal sector would consist of
\na minimum wage system, bipartite negotiations and individual
\nprofessional negotiations.<\/p>\n
"The minimum wage system will remain a safety net to prevent
\nworkers from being underpaid," he said after the opening ceremony
\nof a national conference on productivity in Jakarta.<\/p>\n
Muzni said he could understand why labor unions recently
\ndemanded that the government phase out the minimum wage system
\nand replace it with a wider scheme that covered informal workers.<\/p>\n
"But the problem is not there. The problem is that the labor
\nmarket is oversupplied and most employers prefer the minimum wage
\nsystem although they are financially able to pay more."<\/p>\n
Labor unions recently urged the government to abandon the
\nregional minimum wage scheme because it was applicable only for
\nworkers employed in the formal sector.<\/p>\n
Muzni said the bipartite negotiations would require workers
\nand employers to agree on remuneration systems at the company
\nlevel.<\/p>\n
"Of the most importance is that management must be transparent
\nabout its company's financial condition and union representatives
\nmust have skills in bargaining techniques. If managements are
\ncommitted to building industrial harmony, they should treat their
\nworkers as partners and be transparent about their companies'
\nperformance," he said.<\/p>\n
Muzni said industrial relations had frequently broken down
\nbecause of a lack of transparency.<\/p>\n
The third method, the direct professional negotiations between
\nworkers and the management, he said, allowed "... professionals
\nto demand their own salaries in accordance with their skills and
\nworking experience."<\/p>\n
In the informal sector, Muzni said the government would
\nintroduce simple industrial relations and social security
\nprograms for workers to enforce the Law 3\/1992 on social security
\nand Law No. 13\/2003 on labor.<\/p>\n
"We will set daily working hours, a simple remuneration
\nsystem, transportation and meal allowances, and social security
\nprograms," he said.<\/p>\n
The government has not yet regulated industrial relations in
\nthe informal sector, which employs 70 percent of the nation's
\nlabor force, or more than 60 million people.<\/p>\n
Muzni said the government had asked state insurance firm PT
\nJamsostek to start introducing social security programs among
\nworkers in the informal sector.<\/p>\n
"Thousands of housemaids in Yogyakarta and East Java and
\npedicab drivers in Batam, Riau, have participated in the health
\nand occupational accident insurance programs," he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-prepares-regulations-on-wages-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}