New team established to enforce wage hikes<\/p>\n
JAKARTA (JP): The government has formed an integrated team to
\nenforce the new minimum wage regulations in Jakarta and
\nsurrounding areas, a senior official said.<\/p>\n
\"The team, whose members are from the Ministries of Manpower
\nand Industry, the Attorney General's Office and the Jakarta
\nMilitary Command, was formed to ensure that all employers in the
\nregion comply with the new minimum wage regulations,\" Director
\nGeneral for Industrial Relations and Labor Standards, Suwarto,
\ntold The Jakarta Post yesterday.<\/p>\n
The government has issued regulations on the increase, by five
\npercent to 30 percent, in minimum wages, that took into effect as
\nof April 1, 1995. The minimum wages in Jakarta and West Java are
\nset at Rp 4,600 (US$2.08) per day, a rise of 21 percent from Rp
\n3,800 (US$1.72) in the past.<\/p>\n
The director general said the region, a home to approximately
\n65,000 industries, is quite prone to industrial strikes sparked
\nby labor disputes between management and workers.<\/p>\n
\"The team will especially monitor the areas of Tangerang,
\nBogor, East Jakarta, North Jakarta and Bekasi,\" he said, citing
\nthat most labor unrests in the past occurred in labor-intensive
\ncompanies and those relocated to Indonesia from Korea, Japan and
\nTaiwan.<\/p>\n
A spate of industrial strikes occurred in Jakarta and its
\nsurrounding areas last year when many employers ignored the
\ngovernment's ruling that they raise the daily minimum wages from
\nRp 2,600 to Rp 3,800. Thirty seven companies, violating the
\nregulations, were brought to court and punished with 15-day
\nimprisonment and fines ranging from Rp 75,000 to Rp 750,000.<\/p>\n
Suwarto said the government would closely monitor the
\nenforcement of the minimum wage regulations and would take stern
\nactions against companies found guilty of breaching the
\nregulations.<\/p>\n
\"Besides punishments and administrative sanctions, the
\ngovernment will also blacklist them and announce them and their
\nproducts to the public,\" he said.<\/p>\n
He called on workers to report to his office any violations,
\nin their work place, to help the government ensure enforcement of
\nthe minimum wage regulations.<\/p>\n
\"My office is open 24 hours a day for workers complaints,\"
\nSuwarto said.<\/p>\n
He reiterated that companies, especially labor-intensive
\nfirms, should pay workers above the levels stipulated in the
\ndaily minimum wage regulations to stimulate workers into
\nimproving their productivity and industrial relations.<\/p>\n
Suwarto acknowledged that the daily minimum wage levels were
\nnecessary because many companies were still paying their workers
\nbelow those set by the government.<\/p>\n
\"It is saddening that many big companies are still paying
\ntheir workers below the daily minimum wages set by the
\ngovernment,\" he said. \"What was set by the government in the
\nregulations is the minimum levels employers should comply with.\"
\n(rms)<\/p>",
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"sponsor": "Okusi Associates",
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