Hike in regional minimum wages set<\/p>\n
JAKARTA (JP): The government plans to increase regional
\nminimum wages by between 10 percent and 20 percent next April.<\/p>\n
Syaufii Samsuddin, director general of industrial relations
\nand labor standards at the manpower ministry, said on Tuesday
\nthat almost all provincial offices of the ministry had proposed
\nan increase in minimum wages. Minister of Manpower Fahmi Idris
\nwas expected to announce the decision on an increase in January.<\/p>\n
"This increase is expected to raise optimism among workers in
\nthe coming year," Syaufii said. He acknowledged the financial
\ndifficulties many firms were facing, but said that not all would
\nbe unable to pay at least the minimum wages.<\/p>\n
Syaufii said the government would also decide upon the minimum
\nwages in sectors which were considered able to pay workers higher
\nthan the minimum wage levels.<\/p>\n
"Aceh proposes raising minimum wages in eight sectors and
\nNorth Sumatra proposes hikes in seven sectors, including
\nagriculture, food and beverages, and electronics," he said.<\/p>\n
Last April, the government raised regional minimum wages by an
\naverage of 15 percent.<\/p>\n
A 10 percent increase for a single worker in Greater Jakarta
\n(Jakarta, Bogor, Tangerang and Bekasi), for instance, will
\nincrease the minimum wage to Rp 218,350 from Rp 198,500.<\/p>\n
The ministry rules that companies requiring permission to
\ndelay increasing their workers' salaries should forward their
\nrequests to the ministry within three months of the new
\nministerial decree on minimum wages taking effect.<\/p>\n
The ministry will, if necessary, audit the companies making
\nsuch requests before deciding whether they can delay increasing
\nsalaries.<\/p>\n
Regional minimum wages refer to the lowest wages in small-
\nscale companies, while minimum wages for sectors are higher.<\/p>\n
The director general said that despite numerous labor unions,
\nonly the All-Indonesia Workers Union Federation (SPSI) had been
\nrecommended by the government to represent workers in
\nnegotiations on pay increases with their employers.<\/p>\n
"New labor unions have yet to be allowed to negotiate with
\nmanagements because the company unions have yet to register with
\nthe government," he said.<\/p>\n
Ministerial Decree No. 5\/1998 requires all new labor unions,
\nincluding branches in provinces and regencies, to register with
\nthe government.<\/p>\n
Syaufii also called on companies to pay annual bonuses to
\nworkers who celebrate Christmas before Dec. 25, and to those who
\ncelebrate Idul Fitri before Jan. 10.<\/p>\n
"According to the government regulation, companies are obliged
\nto pay a bonus equaling one-month salary plus allowances as
\nannual bonuses to their workers. Companies failing to comply with
\nthe government ruling will be punished in accordance with the
\n1969 labor law," he said.<\/p>\n
Syaufii said no companies had requested exemption from the
\nruling on annual bonuses. He said that last year, 87 companies
\nwere allowed to defer paying annual bonuses to their workers.
\nFourteen companies' requests were turned down.<\/p>\n
He also said workers who were dismissed 30 days before
\nChristmas or Idul Fitri were entitled to an annual bonus.<\/p>\n
Syaufii also appealed to companies to help provide
\ntransportation facilities to workers who wanted to travel to
\ntheir hometowns to celebrate Idul Fitri and to ensure that they
\nwould return to Jakarta on time.<\/p>\n
"Transportation facilities would benefit not only workers but
\nalso help them to return to their workplaces on time," he said.
\n(rms)<\/p>",
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