Minimum wage up by 36% in North Sumatra<\/p>\n
Apriadi Gunawan, The Jakarta Post, Medan<\/p>\n
North Sumatra Governor T. Rizal Nurdin issued a decree on Monday
\nincreasing the monthly minimum wage by 36.27 percent to Rp
\n464,000 (US$46.4) for the 2002 fiscal year, up from the current
\nRp 340,500 ($34).<\/p>\n
The increase was higher than that proposed by employers'
\nrepresentatives, but lower than that proposed by the labor side.<\/p>\n
North Sumatra provincial administration spokesman Sakhyan said
\nthe increase stipulated by the governor was really a middle
\ncourse that was designed to satisfy both workers and employers,
\nwho had earlier failed to reach an agreement on the issue.<\/p>\n
\"The governor's decree is expected to gain the support of both
\nsides,\" he said at a press conference here on Monday.<\/p>\n
Both the employers and labor unions representing workers in
\nthe province had handed the task of reaching a decision to the
\ngovernor after both sides failed to reach a compromise.<\/p>\n
Employers in the province had proposed the minimum wage be
\nincreased to Rp 453,000 while the labor unions held out for Rp
\n475,000.<\/p>\n
Meanwhile, both employers and workers applauded the governor's
\ndecree, saying it satisfied both sides.<\/p>\n
Muh. Yusuf Tambunan, chairman of the local chapter of the
\nIndonesian Muslim Workers Union (PPMI), said his organization
\nsupported the governor's decree and would disseminate it among
\nits members in the province.<\/p>\n
Chaidir Ritonga, an executive of the local chapter of the
\nIndonesian Chamber of Commerce and Industry (Kadin), said the
\ngovernor's decree was quite accommodative.<\/p>\n
\"The increase of 36 percent in the minimum wage is in line
\nwith the central government's desire to make the minimum wage
\nsufficient to meet minimum physical needs,\" he said.<\/p>\n
The increase is the second highest in the country after East
\nKalimantan hiked its minimum wage by 66 percent to Rp 500,000
\nfrom the current Rp 300,000.<\/p>\n
Six other provinces have already set their respective minimum
\nwages, while more than 23 others have yet to do so, mostly due to
\nthe absence of agreement between workers and employers
\nrepresentatives.<\/p>\n
The six provinces are Jakarta, West Java, Jambi, Central and
\nSoutheast Sulawesi and East Kalimantan.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/minimum-wage-up-by-36-in-north-sumatra-1447893297",
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