Labor law to woo investment<\/p>\n
Moch. N. Kurniawan, The Jakarta Post, Jakarta<\/p>\n
The House of Representatives endorsed on Tuesday the manpower
\nbill, previously known as the labor protection and development
\nbill, aimed at giving more legal protection to workers but at the
\nsame time creating a positive investment climate in the country.<\/p>\n
The bill, which guarantees the rights of both workers and
\nemployers, will now be submitted to President Megawati
\nSoekarnoputri to be signed into law. Should Megawati fail to sign
\nthe bill, the draft will automatically become a law after 30
\ndays.<\/p>\n
Dozens of trade unions under the Coalition for Anti-
\nSuppression on Workers (KAPB), however, staged a boisterous rally
\nagainst the draft in front of the House compound, claiming it
\nsuppressed worker's rights because it did not allow children to
\nwork and minimized compensation for laborers dismissed for
\ncommitting crimes.<\/p>\n
Meanwhile, the Indonesian Employer Association (Apindo) still
\nobjected to one article on severance payments to dismissed
\nworkers, although it agreed on most other articles.<\/p>\n
Secretary General of Apindo Hasanuddin Rahman said the
\nseverance payment of nine times the monthly salary was too high
\nfor employers -- the House made a last minute change on the
\npayment from 12 times the monthly salary -- as it was higher than
\nthe current payment of seven month's salary.<\/p>\n
Major labor unions such as the Federation of All Indonesian
\nWorkers Union (SPSI), and Reform SPSI have accepted the new law.<\/p>\n
Suryachandra, leader of the House Special Committee told the
\nplenary session that the new law would give protection to workers
\nand certainty to employers to invest here.<\/p>\n
One crucial point that could benefit both parties is that
\nlaborers who stage a strike against a company's policy would be
\npaid by employers, but employers and authorities must be given
\nnotification of any strike and it must be carried out at the
\nworkplace.<\/p>\n
If workers violate the strike procedures, the strike is
\nconsidered illegal and employers can temporarily prohibit workers
\nfrom entering the factory's complex without paying their salary.<\/p>\n
At present, employers are often worried about unruly labor
\nstrikes which can be conducted at anytime and anywhere, thus
\ndisrupting the company's production, and yet employers are still
\nrequired to pay striking workers.<\/p>\n
The lingering labor strikes in the country has been blamed as
\none of the main factors for the relocation of so many companies
\nto countries such as Vietnam and China.<\/p>\n
The law also stipulates that working hours are 40 hours per
\nweek, which is still quite competitive with those in other
\ndeveloping countries. For comparison, Vietnam and China have 48-
\nhour work weeks.<\/p>\n
Employers also do not have to pay compensation for a worker
\nwho resigns voluntarily or is dismissed for committing crimes,
\nexcept the worker's accumulated benefits, according to the new
\nlaw.<\/p>\n
The new manpower bill would replace manpower law No 25\/1997
\nand other obsolete laws, which have been rejected by all labor
\nunions for not protecting their rights.<\/p>\n
The House of Representatives has revoked the Manpower Law No
\n25\/1997 and implemented various obsolete laws including Law No
\n12\/1948 on Work, Law No 7\/1963 on prevention of strikes and lock-
\nouts in vital firms, Law No 14\/1969 on Basic Principles of
\nManpower to avoid overlapping regulations.<\/p>\n
But according to the explanation of the new law, the obsolete
\nlaws have placed the country's laborers in a vulnerable position.<\/p>\n
The endorsement of the manpower bill is actually a reflection
\nof the mutual understanding between several major labor unions
\nand Apindo.<\/p>\n
After the endorsement of the manpower bill, the House will
\ncontinue to deliberate on the industrial relations dispute
\nsettlement bill, which will replace Law No 22\/1957 on industrial
\ndispute settlements.<\/p>",
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