Labor unions keen to extend, revamp minimum wage system<\/p>\n
Ridwan Max Sijabat, The Jakarta Post, Jakarta<\/p>\n
Labor unions say the government should scrap the current minimum
\nwage system, which according to them does little to protect the
\nvast majority of workers outside the formal sector.<\/p>\n
Most of the 76 labor unions registered with the Manpower and
\nTransmigration Ministry have urged the government to phase out
\nthe minimum wage system and create a new one to cover not only
\nthe 30 million workers in the formal sector but also the more
\nthan 60 million others who work in non-taxable jobs.<\/p>\n
A much smaller minority of unions, meanwhile, defended the
\ngovernment's move to set minimum wages in the regions, a move
\nthey say saved many low income workers from further hardship.<\/p>\n
Rekson Silaban, the chairman of the Confederation of
\nProsperity Labor Unions (KSBSI), said that many unions considered
\nthe current minimum wage system no longer relevant.<\/p>\n
"The regional minimum wages have been set annually not for the
\nsake of workers but for political interests to show the
\ngovernment's commitment to protecting workers. But it is actually
\na deception since the government has never paid attention to the
\nlarger number of (workers) in the informal sector," he told The
\nJakarta Post on Monday.<\/p>\n
KSBSI and many other labor unions said the government should
\ndesign a national standard remuneration system to help protect
\nall paid workers both in both the formal and informal sectors.<\/p>\n
A similar suggestion was raised by the Confederation of All-
\nIndonesian Workers Unions (KSPSI). The union said it was the
\nright time to propose a new remuneration system because of the
\ncurrent economic difficulties, the zero growth of foreign
\ninvestment and the high unemployment rate of 10 percent.<\/p>\n
However, KSPSI chairman and former manpower minister Jacob
\nNuwa Wea said the existing wage system should be maintained for
\nthe time being until the national economy recovered.<\/p>\n
"The minimum wage system is still needed to prevent labor
\nconditions from deteriorating amid our economic difficulties.
\nWorkers cannot do much to improve their social welfare because of
\nthe oversupply in the labor market and workers' low quality and
\nproductivity," he said.<\/p>\n
Jacob said the government set minimum wages by sector because
\nof the diverse conditions of companies in different industries.
\nCompanies in the mining and banking sectors were relatively
\nbetter-off and financially more able to pay workers above the
\ngovernment-set minimum wage levels than those in the labor-
\nintensive manufacturing sector, he said.<\/p>\n
Dita Indah Sari, who chairs the Indonesian Front for the
\nStruggle of Workers (FNBI), said workers and employers should
\nform a coalition to reform remuneration and production systems
\nand help improve the labor market's condition.<\/p>\n
"Workers and employers should coalesce to force the government
\nto provide bank credits to the real sector in an effort to allow
\nthe industry sector to reform their production systems and pay
\ntheir workers better," she said.<\/p>\n
She said many labor-intensive companies could not afford to
\npay their workers in accordance with minimum wages as they were
\nstill using old machines in their production systems.<\/p>\n
Therefore, they recruited new workers on a contract basis,
\nDita said.<\/p>\n
Harijantho, an executive of the Indonesian Footwear Makers
\nAssociation (Aprisindo), blamed the low quality of human
\nresources, high unemployment and the government's lack of
\nattention toward the real sector for the low wages paid to
\nworkers.<\/p>",
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"sponsor": "Okusi Associates",
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