Minimum wages to rise in April<\/p>\n
JAKARTA (JP): The government announced yesterday it will raise
\nminimum wage levels by between 10 percent and 35 percent in 19
\nprovinces as of April 1.<\/p>\n
Despite the positive aspects of the move, the All Indonesian
\nWorkers Union (SPSI) was quick to denounce the raises decreed by
\nMinister of Manpower Abdul Latief as short of workers' expectations.<\/p>\n
The minimum daily wage level in Jakarta has been raised by a 21
\npercent from Rp 3,800 to Rp 4,600. Union activists had earlier
\nexpected to see an increase to at least Rp 5,000, which they argue
\nis in line with the high cost of living in the capital.<\/p>\n
Still many see the increases as a welcome development.<\/p>\n
Latief said yesterday that the increases are intended to bring the
\nminimum wage level to the bare minimum subsistence level in order to
\nmeet the minimum physical requirements of workers.<\/p>\n
The announcement by his ministry stipulates that when the hikes
\nare affected this April 1, the minimum wage levels will equal 107
\npercent of the minimum physical requirements.<\/p>\n
The government plans to phase in more increases in the coming
\nyears to bring the minimum wage to levels that will afford workers
\ntheir needs, including education and health care.<\/p>\n
The minimum wage level is set for a seven-day or 40-hour working
\nweek and is calculated on a 30-day basis. This means that a worker
\nin Jakarta should take home at least Rp 138,000 a month beginning
\nnext April, up from Rp, 112,000 at present.<\/p>\n
The minimum wage level includes up to 25 percent in allowances,
\nbut excludes incentive bonuses.<\/p>\n
Latief told The Jakarta Post yesterday that the increases for the
\nother eight provinces will soon be announced. "We are waiting for
\nthe proposals from the provincial administrations."<\/p>\n
The minimum wage levels are negotiated in each region by
\nrepresentatives of the SPSI and of the Apindo association of
\nemployers. The process is mediated by government officials.<\/p>\n
Latief said the raises were announced three months ahead of their
\nenforcement to allow employers ample time to prepare.<\/p>\n
"I don't want to see any companies delaying the enforcement of the
\nminimum wage. They must abide by it on April 1," he insisted.<\/p>\n
Under the current law enacted in 1969, employers who fail to pay
\ntheir workers the minimum wage level could be jailed for up to three
\nmonths, or required to pay a fine of Rp 100,000. Latief's office is
\ncurrently drafting a new labor law that seeks a stiffer penalty.<\/p>\n
The minister recalled that last year many companies in Jakarta and
\nWest Java delayed raising the wages of their workers by complaining
\nthat they were not given enough time to prepare for the hikes. The
\ndelay caused industrial labor actions to plague many companies in
\nJakarta and West Java.<\/p>\n
"Now, there's no excuse whatsoever for them to delay," he said.<\/p>\n
Apindo's chairman Suratno Hadisuwito yesterday said his
\norganization welcomed the increases because they were the results of
\nnegotiations with the union representatives.<\/p>\n
"We will abide by the regulations," he said.<\/p>\n
The increase is expected to not only improve workers' welfare, but
\nalso their productivity, he added.<\/p>\n
But SPSI Deputy Chairman Saman Sitorus complained that the hikes
\nwere barely sufficient to cover the runaway cost of living. "What
\ncan Rp 4,600 buy in Jakarta?," he said of the new minimum wage level
\nfor the capital city. "It is enough only for a lunch."<\/p>\n
He proposed that the government study the actual daily needs of
\nworkers before setting the minimum wage levels.<\/p>\n
The Indonesian Prosperity Labor Union (SBSI) also joined in the
\ncriticism for the government's failure to raise workers the increase
\nthey are entitled.<\/p>\n
In a statement, SBSI said the ideal minimum wage level in Jakarta
\nis Rp 7,000 a day. That's for a single worker. Workers with families
\nshould get more than that, it said.<\/p>\n
While the hikes announced are welcome, SBSI said it will continue
\nto fight for an even higher increase workers wages.(rms\/emb)<\/p>",
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