Minimum wage deferrals require workers' consent<\/p>\n
JAKARTA (JP): The government will consider companies' requests
\nfor postponements in the implementation of the newly increased
\nminimum wages only if they first solicit their workers' consent,
\naccording to Minister of Manpower Abdul Latief.<\/p>\n
Latief said on Saturday his office has approved some requests
\nand was currently studying others. He did not say how many
\ncompanies had requested postponements, or how many had been
\napproved.<\/p>\n
\"I'll get the final report (on the companies' requests) out at
\nthe end of this month,\" he said after attending the celebration
\nof the 24th anniversary of the Federation of All-Indonesia
\nWorkers Union (FSPSI).<\/p>\n
He said the government exempts companies from paying the
\nminimum wages only under certain special conditions, such as
\nserious financial difficulties.<\/p>\n
About 150,000 companies stated a readiness to raise their
\nworkers' wages starting April 1, 1997 in compliance with the
\nnewly set regional minimum wage level, which was raised by 10
\npercent from last year. It was reported that 147 companies have
\nrequested postponements, though it was not clear for what
\nreasons.<\/p>\n
Minimum wages, which only apply to the formal sector, are set
\nby the government. They have been raised every year since their
\nintroduction in 1992, when the average daily minimum wage was Rp
\n2,000. The newly-set monthly minimum wages are now between Rp
\n106,500 (US$44, the lowest, for Yogyakarta and Central Sulawesi)
\nand Rp 235,000 (the highest, for Batam).<\/p>\n
Marzuki Achmad, chairman of FSPSI -- the only labor union
\nrecognized by the government -- said the union hoped that this
\nyear fewer companies would be permitted to delay paying the new
\nregional minimum wage.<\/p>\n
Marzuki said that under the current government regulation, a
\ncompany would first have to discuss the matter with workers and
\nconvince them that the company is in financial trouble and is
\ntherefore unable to pay the new minimum wage.<\/p>\n
\"The first step is the discussion between the company's
\nmanagers with the company's unit of SPSI, then with the SPSI
\nlocal branch, and finally with the SPSI central board.<\/p>\n
\"Hopefully there'll be no more postponements this year,\" he
\nsaid.<\/p>\n
In 1996, 365 out of 44,565 companies applied for a
\npostponement. Of those who applied, 269 were approved. They
\nincluded 203 garment and textile companies, 28 footwear
\nproducers, 11 toy manufacturers and leather companies.<\/p>\n
Marzuki also spoke about the controversy surrounding the newly
\nsubmitted government-sponsored bill on manpower, said by
\nopponents to curtail workers' rights if endorsed.<\/p>\n
He said his organization had studied the document and had
\nlobbied members of the House of Representatives to introduce
\nchanges in favor of workers.<\/p>\n
Marzuki was commenting on Latief's suggestion that workers
\nlobby the House in their efforts to have the bill modified.<\/p>\n
\"We've talked with members of the House's four factions on
\nabout 12 subjects in the bill that we think could harm workers'
\nrights. The legislators have all agreed to fight for our
\naspirations,\" he said.<\/p>\n
Among the controversial elements in the bill are chapters
\nrelated to workers' rights to form unions and to hold strikes,
\nprotection for on-duty union leaders, dismissal of workers,
\nlabors working overnight, and protection for women and child
\nworkers.<\/p>\n
\"We've talked informally with the manpower ministry and
\nsuggested that improvements be made. There have been commitments
\n(to improvements),\" he said. (aan)<\/p>",
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