Minimum wage report urges stronger ruling<\/p>\n
JAKARTA (JP): The government is considering a proposal to
\nstrengthen its minimum wage regulation by stating that the
\n\"minimum wage\" refers only to basic wages and exclude allowances.<\/p>\n
Many employers now include allowances in their calculation of
\nwages.<\/p>\n
The proposal was submitted to Minister of Manpower Abdul
\nLatief yesterday by a council made up of representatives of
\nemployers, workers and the government.<\/p>\n
The current regulation, based on a 1990 ministerial decree,
\nstipulates that the minimum wage set by the government must make
\nup at least 75 percent of the employee's basic income, with the
\nremaining 25 percent being allowances.<\/p>\n
This stipulation has been subject to various interpretations,
\noften causing friction between employers and workers.<\/p>\n
Each year, the Ministry of Manpower sets the minimum wage
\nlevels for Indonesia's 27 provinces.<\/p>\n
The tripartite body concluded its meeting to discuss the wage
\nproblems and a host of other labor issues yesterday by coming up
\nwith a set of proposals for Latief.<\/p>\n
\"The regional minimum wage is the lowest basic wage received
\nby workers in a certain area in a single province,\" according to
\none of the points in the recommendation, which was made available
\nto journalists yesterday.<\/p>\n
\"This brings an end to the 75:25 formula,\" Suwarto, the
\nDirectorate General of Labor Standards Supervision at the
\nMinistry of Manpower, told journalists after the meeting.<\/p>\n
The recommendation was signed by Suwarto, Bomer Pasaribu, who
\nrepresented the Federation of the All Indonesian Workers' Union,
\nand R. Moedjianto, a board member of the Indonesian Association
\nof Employers.<\/p>\n
\"We hope that the number of labor disputes will be reduced if
\nthis revision is made into a ministerial ruling,\" Andi Hasbudin,
\nanother union representative said at the meeting, which was open
\nto journalists.<\/p>\n
The employers' association chairman, Suratno Hadisuwito, said
\nif the proposal is approved, his organization would immediately
\ndisseminate the information to ensure compliance by its members.
\n\"Whether we are prepared or not, we will have to adhere to it,\"
\nhe told reporters.<\/p>\n
\"Employers must strive harder towards efficiency to boost
\nproductivity,\" he added.<\/p>\n
Suwarto said the new regional minimum wage levels may be
\nannounced some time next week. Any changes must be announced at
\nleast three months before they become effective.<\/p>\n
The union has been pushing for an increase of between 15
\npercent and 17 percent for all 27 provinces, taking into account
\nthe 8.5 percent inflation the country registered last year.<\/p>\n
The tripartite agency also recommended that the minister make
\nthe rules on workers' dismissals stricter.<\/p>\n
A clause in a 1986 ministerial decree states that an employer
\ncannot dismiss workers on racial, religious and gender grounds,
\nor because a person has joined a union.<\/p>\n
The agency said the rule should also specifically stipulate
\nthat employees cannot be fired because they have been sick for a
\nperiod of up to 12 months, gotten married, or become pregnant, or
\nrequire maternity leave.<\/p>\n
The tripartite body also proposed that the government regulate
\ndismissals caused by plant closures or corporate takeovers. (anr)<\/p>",
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