Govt warns of sanctions over annual bonuses<\/p>\n
JAKARTA (JP): The government will impose administrative and
\nsocial sanctions against companies which refuse to pay their
\nworkers Christmas and Idul Fitri bonuses, Minister of Manpower
\nBomer Pasaribu said on Tuesday.<\/p>\n
However, he said the manpower ministry would not file lawsuits
\nagainst companies for violating the ministerial decree on annual
\nbonuses because the punishment they would incur -- a Rp 100,000
\nfine -- was \"too lenient\".<\/p>\n
The current Manpower Law threatens a maximum legal fine of
\nonly Rp 100,000 or a three-month jail sentence for companies
\nwhich breach the ruling.<\/p>\n
\"Many companies will prefer being fined Rp 100,000 to paying
\nthe bonus which equals one-month's salary,\" Bomer said in a
\nseminar on labor standards here.<\/p>\n
The 1997 Ministerial Decree on Holiday Bonuses stipulates
\ncompanies are obliged to pay bonuses to their workers, and the
\npayment has to be made at least seven days before Christmas (for
\nChristian workers) and before Idul Fitri (for Muslim workers).<\/p>\n
He predicted no less than 1.5 million workers will leave
\nJakarta for their hometowns to celebrate the post-fasting Idul
\nFitri holiday, which is expected to fall on Jan. 9.<\/p>\n
Bomer said the government would resort to administrative
\nsanctions and the blacklisting of errant companies.<\/p>\n
\"Apart from warnings and blacklists, they will be made public
\nfor not paying the mandatory bonuses,\" he said.<\/p>\n
He said only companies worst affected by the protracted
\nmonetary crisis would be exempted.<\/p>\n
\"Companies which claim they are facing bankruptcy or remain on
\ntheir way to recovery should deliver an official request to delay
\nthe payment of the bonuses. They will be audited to prove they do
\nnot cheat,\" he said.<\/p>\n
No companies have so far requested exemption from the
\nregulation, according to Bomer.<\/p>\n
Bomer warned blacklisted companies would face difficulties in
\nmarketing their products, both at home and overseas. Errant
\npublicly-listed companies will find obstacles in offering shares
\non the local stock market, he added.<\/p>\n
He said the public and the press should play their role in
\nimposing social sanctions against companies which fail to respect
\nworkers' rights.<\/p>\n
He said companies which violate the decree three times in a
\nrow for unexplained reasons will be disqualified and their
\noperation licenses revoked.<\/p>\n
\"It is the right time for the government to take strict
\nmeasures against managements which lack commitment to improving
\nlabor conditions in Indonesia,\" he said.<\/p>\n
He said the government would no longer maintain a cheap labor
\npolicy to lure foreign investors, but will instead encourage
\nlocal and foreign investors to respect workers' rights in order
\nto give their products a competitive advantage both in local and
\ninternational markets. (rms)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-warns-of-sanctions-over-annual-bonuses-1447893297",
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"sponsor": "Okusi Associates",
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