New pay system sought to end labor conflicts<\/p>\n
BANDUNG, West Java (JP): A labor activist and a businessman
\nproposed yesterday that Indonesia establish a national
\nremuneration system because the wage levels dictated by the
\ngovernment are not entirely acceptable.<\/p>\n
Labor activist Suradi Idris and entrepreneur Rienaldo Thamrin
\nsaid they believe a national remuneration system would prevent
\nlabor conflicts sparked by poor wages.<\/p>\n
At present, the government sets the minimum wage level for all
\ncompanies in each of the 27 provinces across the country.<\/p>\n
Suradi, chairman of the textile and garment sectoral trade
\nunion, said that a remuneration system acceptable to employers,
\nworkers and the government, was urgently needed in line with the
\nrobust growth of the industrial sector and the increasing foreign
\ninvestments in Indonesia.<\/p>\n
\"The numerous labor strikes demanding pay hikes and many
\ncompanies' refusal of the regulations are indications that the
\ngovernment's policy on the minimum wage level is not entirely
\nacceptable,\" he told The Jakarta Post.<\/p>\n
He said that of over 150,000 companies in Indonesia, around 30
\npercent, or 50,000, are joint ventures and foreign companies
\npartly owned by entrepreneurs from Japan, South Korea, the United
\nStates, Australia and Taiwan.<\/p>\n
The joint and foreign companies apply the remuneration system
\nused in their respective countries, he added.<\/p>\n
Suradi warned that in the industrialization era, problems
\nrelated to industrial relations, such as wage systems,
\noccupational safety and freedom of association, will become more
\ncomplex.<\/p>\n
\"And if businessmen and the government fail to handle such
\nproblems, the industrial relations in the country will worsen
\nand, subsequently, disrupt the nation's development and undermine
\nnational stability,\" he said.<\/p>\n
Rienaldo, the deputy chairman of the Association of Indonesian
\nBusinessmen, said that the establishment of a national wage
\nsystem was urgently needed in efforts to create a better climate
\nin which to do business in the country.<\/p>\n
\"Time has come for fast growing Indonesia to have a national
\nremuneration system acceptable to all sides and in all sectors,\"
\nhe said.<\/p>\n
Rienaldo, who owns several factories in Jakarta, Tangerang and
\nEast Kalimantan, said having an established wage system will make
\nit easy for investors to calculate their labor costs.<\/p>\n
Besides, the employers will not be faced with industrial
\nconflicts over wage levels.<\/p>\n
\"I think businessmen in general need security to operate their
\ncompanies and want to create harmonious industrial relations with
\ntheir workers,\" he said.<\/p>\n
Japanese system<\/p>\n
The Chairman of the Association of Indonesian Businessmen,
\nHadi Suratno, who backs the idea of the establishment of a
\nnational wage system, said Indonesia should take the Japan
\nremuneration system as a model.<\/p>\n
The Japanese system, he said, emphasizes the principle of
\n\"justice\" to both employers and workers.<\/p>\n
\"The Japanese wage system will be very good if applied in
\nIndonesia because it is based on the profit of companies,\" he
\nsaid.<\/p>\n
Under the Japanese system, besides receiving monthly salaries,
\nworkers also obtain a certain portion of their company's profits
\nand dividends.<\/p>\n
He said the Japanese wage system was established when it
\nstarted to develop its industry in the 1940s.<\/p>\n
\"The number of labor conflicts, especially industrial strikes,
\nis very small in Japan because that country has a good system
\nthrough which employers treat their workers as partners,\" he
\nsaid. \"Such a partnership is necessary to help create industrial
\nharmony in companies.\" (rms)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/new-pay-system-sought-to-end-labor-conflicts-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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