Latief criticized for minimum wage U-turn<\/p>\n
JAKARTA (JP): A network of non-governmental organizations
\nyesterday criticized Minister of Manpower Abdul Latief over his
\ndecision to allow 215 companies to defer paying the new minimum
\nwages.<\/p>\n
\"We are disappointed with the decision,\" the Network of 10
\nNGOs, as the group is called, said in a statement.<\/p>\n
\"We find the reason (for the decision) hard to accept,\" the
\nnetwork's leader, Binsar Effendi Hutabarat, said in the
\nstatement.<\/p>\n
The minister was not being consistent with his own policy,
\nwhich called for raising minimum wages while simultaneously
\nallowing 215 companies to defer paying them, Binsar said.<\/p>\n
Latief announced this week that the government has exempted
\n215 companies from the minimum wage regulation because they were
\nexperiencing financial difficulties.<\/p>\n
According to Binsar, the exemptions were granted mostly to
\ncompanies in the textile and garment, furniture and handicraft
\nsectors. The 215 companies employ as many as 30,000 workers.<\/p>\n
The government on April 1 raised the daily minimum wage levels
\nin 27 provinces by an average of more than 10 percent. At the
\nsame time, a new ruling compels companies to calculate the wages
\nof workers, both permanent and temporary, on the basis of 30
\nworking days in a month.<\/p>\n
This is the largest exemption ever granted by the government
\nin any given year.<\/p>\n
Informed sources said most companies had no difficulties in
\nraising their wages, but they strongly objected to the new method
\nof calculating wages.<\/p>\n
Wilhelmus Bhoka, deputy chairman of the Federation of the All
\nIndonesian Workers Union (FSPSI), told The Jakarta Post that he
\nbelieved the decision was taken after observing all procedures.<\/p>\n
\"The regulation allows companies to defer paying the minimum
\nwages if they cannot afford it. If all the procedures have been
\nfulfilled, it is then within the power of the minister to grant
\nthe reprieve,\" Bhoka said.<\/p>\n
\"What, then, can we do?\" he asked.<\/p>\n
He added that objection would have to come from the respective
\ntrade unions rather than the federation. \"So far, no one has
\nstated its objection,\" he noted.<\/p>\n
A source in the Ministry of Manpower said the FSPSI was
\nconsulted by the government before the deferment was granted. The
\nsource said the deferment is only given for a period of one year.<\/p>\n
Without the deferment, these companies would go bankrupt and
\nclose down. \"Then the workers will be out of job,\" he added.<\/p>\n
The Indonesian Prosperous Labor Union (SBSI) questioned the
\nauthority of the government in granting the exemptions.<\/p>\n
SBSI chairman Muchtar Pakpahan said any deferment should be
\nnegotiated between management and workers and not between
\nmanagement and the government.<\/p>\n
Instead, the government had taken a unilateral decision in
\ngranting the exemption, he said. (16)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/latief-criticized-for-minimum-wage-u-turn-1447893297",
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