Labor compensation remains effective<\/p>\n
By Ridwan Sijabat<\/p>\n
JAKARTA (JP): Despite protests from numerous employers, the
\nministerial decree regulating higher compensation for dismissed
\nor resigning employees remains effective, say government
\nofficials.<\/p>\n
Syaufii Samsyudin, director general for industrial relations
\nand labor standards at the Ministry of Manpower and
\nTransmigration, told The Jakarta Post here on Tuesday that
\ncompanies are obliged to comply with the decree.<\/p>\n
Employers found violating it would be processed according to
\nthe law, he warned.<\/p>\n
\"All objections and protests lodged by employers are not an
\nexcuse for them to be excluded from abiding by the decree. This
\nnew ruling issued in June 20, 2000, remains effective,\" he said.<\/p>\n
He said both the Indonesian Employers Association (Apindo) and
\nnumerous employers, especially foreign investors, have complained
\nabout the new ruling and urged the government to revise it.<\/p>\n
\"However, it is impossible for the government to revise the
\ndecree because it is based on a tripartite agreement between
\nlabor unions, Apindo and the government,\" he said adding that
\nwhile a Tripartite Board was discussing these grievances it would
\nnot substantially change the decree.<\/p>\n
The decree issued by former manpower minister Bomer Pasaribu
\nto replace the 1996 decree on severance payment, regulates that
\nemployers are obliged to gain permission from the Committee for
\nSettlement of Labor Disputes (P4) if they wish to dismiss an
\nemployee.<\/p>\n
Should permission be granted, the company is required to
\nprovide a severance payment and a merit or service payment to the
\ndismissed worker.<\/p>\n
On severance pay, the decree regulates that a dismissed worker
\nemployed for less than a year will receive 100 percent of their
\ngross monthly wage while those employed for less than two-years
\nwould receive 200 percent of their gross monthly wage. This scale
\ncontinues up to employees who have worked less than five years at
\na company.<\/p>\n
Those who have worked more than five years will receive 600
\npercent of their gross monthly wage.<\/p>\n
Syaufii said gross monthly wages are comprised of the basic
\nsalary along with housing, health and food allowances.<\/p>\n
The previous decree only provided compensation of 500 percent
\nof the gross monthly salary to those who have worked at least
\nfour years.<\/p>\n
Regarding service or merit payment, the new decree regulates
\nthat dismissed employees who have worked between three and six
\nyears get another 200 percent of their gross monthly salary while
\nthose who have been employed between six and nine years gain 300
\npercent of their gross monthly salary.<\/p>\n
Workers who have been employed between nine to 12 years
\nreceive 400 percent while those employed between 12 and 15 years
\nshould receive 500 percent of their monthly wage.<\/p>\n
The scale continues on up to those who have worked for 24
\nyears or more receiving 1,000 percent of their gross monthly
\nsalary.<\/p>\n
The previous decree only ruled that dismissed workers who have
\nbeen at a company for at least five years would receive any such
\nservice or merit payment with the highest awarded being 600
\npercent for those who have worked more than 25 years.<\/p>\n
Workers who resign or retire are only entitled to receive
\nservice or merit payment.<\/p>\n
Another new aspect of the decree is that workers dismissed due
\nto an occupational mistake they made are still entitled to
\nservice payment.<\/p>\n
The new decree also regulates that employers are obliged to
\ngive workers compensation in the form of annual and long service
\nleave and transportation fees from their residence to the
\nworkplace.<\/p>\n
Suparwanto, Apindo chairman, admitted that numerous employers
\nopposed the decree as it favored workers too much.<\/p>\n
\"The government should also think of employers' interests amid
\nthe prolonged economic crisis,\" he said.<\/p>\n
\"Apindo has called on the government to revise it,\" he said.<\/p>\n
But companies are already taking a stand and resisting the
\ndecree.<\/p>\n
One example is PT Indonesia Synthetic Textile Mills, a foreign
\ninvestment company in Pasar Baru, Tangerang, has refused to pay
\ncompensation in accordance with the decree to Muhammad Yunus who
\nretired on Aug. 31.<\/p>\n
The company, in a letter to the worker, maintained that the
\ndecree is under discussion and is being revised and thus the
\ncompany will not pay according to the stipulations of the new
\ndecree.<\/p>\n
Jacob Nuawea, chairman of the Federation of All Indonesian
\nWorkers Union (SPSI), however sent out a strong message saying
\nthat a national strike would be organized if the government
\nrevises the decree.<\/p>\n
\"SPSI will stage a national strike if the decree is revised.
\nInvestors should not only think of their business but also of
\ntheir workers' fates because workers are the worst hit during
\ndismissals,\" he said.<\/p>\n
Syaufii insisted that the decree, the substance of which has
\nbeen agreed on by the tripartite board, was issued to encourage
\ngreater industrial harmony between workers and management.<\/p>\n
\"With the decree, employers are expected to be extra cautious
\nwhen dismissing their workers.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/labor-compensation-remains-effective-1447893297",
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