Industrial action for higher wages likely: Observers<\/p>\n
Ridwan Max Sijabat, The Jakarta Post, Jakarta<\/p>\n
Labor activists and observers predict that more state enterprises
\nwill be threatened with massive strikes since most of their staff
\nare underpaid.<\/p>\n
Federation of State Enterprises' Trade Unions (Federasi SP
\nBUMN) chairman Abdul Azis Hasan said strikes were seen as the
\nlast resort to force the government to improve the employees'
\nremuneration standard, which is lower than that of civil
\nservants.<\/p>\n
\"After employees of several state-owned companies (threatened
\nto) walk off their jobs recently, PT Pelni workers are likely to
\nfollow suit because the sea transportation firm can no longer
\ncompete with airline companies,\" Abdul said on Thursday.<\/p>\n
He underlined that labor unions in state enterprises had grown
\nstronger amid the reform euphoria, which made employees much more
\naware of their rights.<\/p>\n
Most state enterprises do not comply with core labor standards
\nin accordance with the Labor Law. Of 158 state enterprises, only
\n60 percent or 94 companies have adopted a collective labor
\nagreement with their management, Abdul said.<\/p>\n
\"A series of threatened strikes involving employees of
\naircraft maker PT Dirgantara Indonesia, railway company PT KAI,
\nnational flag carrier Garuda Indonesia and oil and gas firm
\nPertamina reflect not only mismanagement and inefficiency, but
\nalso the government's violation of core labor standards,\" he
\nsaid.<\/p>\n
Separately, International Transport Federation (ITF) country
\nrepresentative Hanafi Rustandi said that state enterprises in the
\ntransportation sector had lost out to private competitors because
\nof mismanagement and inefficiency.<\/p>\n
\"Garuda, Merpati, KAI, Pelni and Damri are not competitive
\nbecause of severe financial difficulties and rampant corruption
\nwhich has led to inefficiency,\" he said.<\/p>\n
State enterprises, he added, had long served as cash cows for
\nthe government and ruling political parties, making them unable
\nto improve their employees' welfare.<\/p>\n
Hanafi and Abdul both said that poor labor conditions were a
\ntime bomb that could explode at any time if no radical measures
\nwere taken to improve the companies' performance.<\/p>\n
The coordinator of BUMN Watch, Naldi Nazar Haroen, said the
\ngovernment's failure to take bold measures against inefficiency
\nand corruption would result in many state enterprises collapsing
\nin coming years.<\/p>\n
\"Most state enterprises remain unhealthy since they have been
\nsubordinated to technical departments controlled by politicians.
\nThe companies will continue functioning as money machines for the
\nbureaucracy and ruling parties,\" he said.<\/p>\n
A recent BUMN Watch study revealed that only 15 of the 158
\nstate enterprises had booked annual profits over the last few
\nyears. Of the profitable firms, only a few have adequately
\nimproved their employees' welfare.<\/p>\n
Naldi said that to boost profits, the enterprises should first
\nof all be divided into profit-oriented and public service-
\noriented ones. Learning from Malaysia, the companies should be
\noverseen by a holding company chaired by a professional, instead
\nof a minister.<\/p>\n
\"Profit-oriented companies have to develop professional modern
\nmanagements and be required to meet certain targets,\" he said.<\/p>\n
Under such a structure, Malaysian state enterprises contribute
\nto 85 percent of the country's annual state budget.<\/p>\n
State enterprises in Indonesia control Rp 1.158 trillion in
\ntotal assets, but contribute only 2 percent or Rp 23 trillion
\nannually to the state budget, Naldi said.<\/p>",
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"sponsor": "Okusi Associates",
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