Speaking out about uncertainty over bonuses<\/p>\n
JAKARTA (JP): \"It's the thought that counts\" is a welcome
\ncliche nowadays. As the economic crunch bites deep into firms'
\ncoffers, a simple card may have to suffice instead of pricey
\nChristmas and New Year's gifts for the long list of business
\ncontacts.<\/p>\n
Many employers say this is better than having to tell grim-
\nfaced workers of delayed or canceled bonuses, wage cuts or no
\nwage increase despite the mandatory minimum regional wage hike.
\nTheir predicament is doubled as the Islamic post-fasting holiday,
\nIdul Fitri, will fall at the end of January.<\/p>\n
Employers, employees and industry figures share their concerns
\nabout what may not be a very merry holiday season after all.<\/p>\n
Anton J. Supit, chairman of the Indonesian Footwear
\nAssociation (Asprindo):<\/p>\n
The shoe sector is very vulnerable to the U.S. dollar exchange
\nrate because of its high import content. Our companies have to
\nimport about 60 percent of their raw materials.<\/p>\n
I understand that employees need the (Idul Fitri) allowances
\nvery badly. But... I think there will be a number of companies
\nthat will ask permission (from the Ministry of Manpower to defer
\nor be exempt from payments). The association can... only try to
\npersuade the companies not to do this.<\/p>\n
I think we have more than 1,000 companies -- small, medium and
\nlarge ones, mostly in Bogor, Tangerang, and Bekasi in West Java
\nand in Surabaya, East Java -- with more than 500,000 workers.<\/p>\n
But despite the gloomy conditions, we must maintain our
\noptimism and try to improve our business.<\/p>\n
Indrasari Tjandraningsih, researcher at Bandung-based Akatiga
\nstudy center on land, labor and the small-scale economy:<\/p>\n
It is a good thing already if companies do not lay off their
\nworkers... I do not see the possibility of a wage increase.<\/p>\n
The condition is tense; on the surface things are relatively
\nquiet, but perhaps families and severance payments are still
\nsustaining laid-off workers. At least 100,000 workers have lost
\njobs in the labor-intensive plants in West Java alone. Then there
\nare the thousands of migrant workers who returned from the Middle
\nEast... where will they seek employment?<\/p>\n
Women are the hardest hit because they make up the most
\nworkers in the plants and among those migrants.<\/p>\n
West Java's textile industry has 200 to 9,000 workers in each
\nplant.<\/p>\n
And the crisis has become a convenient means to lay off
\nworkers for companies which have long wanted to reduce personnel.
\nA group of workers went to the Legal Aid Office in Bandung to ask
\nassistance in suing their employer -- whom they alleged dismissed
\nthem without permission of the Ministry of Manpower -- as it
\nseemed the authorities could do nothing against the action.<\/p>\n
Bambang Trihatmodjo, chairman of Bimantara Group and APAC Inti
\nCorpora, formerly Kanindo, a textile company in Bawen, Semarang,
\nCentral Java, which has 10,000 workers:<\/p>\n
If the monetary crisis continues, many companies will collapse
\nbecause they will not be able to repay their loans.<\/p>\n
Businessmen should evaluate and curtail unnecessary spending,
\nand seek efficiency in all sectors. In short, we must not obral-
\nobralan (spend recklessly).<\/p>\n
Up to now, Kanindo survives and will pay all of its workers'
\nrights in salaries and everything else.<\/p>\n
But... increasing salaries is very difficult. Should we
\nchoose increasing wages and let many companies go bankrupt, or
\nmaintain current wage levels?<\/p>\n
I'm sure the government can solve the crisis, and that it will
\nend soon.<\/p>\n
Netty A. B. Ryanto, honorary chairwoman, Association of
\nIndonesian Women Employers:<\/p>\n
If cutting salaries at the managerial level is the best
\nchoice, why not? ...We can't send workers home... there is no
\nplace they could be absorbed.<\/p>\n
The easiest spending to cut is promotions. But cutting
\noperational costs is difficult... Despite all efforts at
\nefficiency, we still think it is difficult to increase the
\nregional minimum wage.<\/p>\n
My business in the health sector has yet to be affected. But
\nwe have noticed that people suffering from a cold won't go to the
\ndoctor now.<\/p>\n
Subanu Dwi Seputra, 29, owner of PT Putra Antara, a book
\ndistributor:<\/p>\n
I have already given out bonuses for my 20 employees for
\nChristmas, New Year's and Idul Fitri.<\/p>\n
I have stopped using my cellular phone and I don't use the
\ncompany car anymore.<\/p>\n
I can't just dismiss two or three employees, but I'm thinking
\nhard about how to use the manpower we have for better efficiency.<\/p>\n
Fortunately, most of the employees are students working part-
\ntime.<\/p>\n
Suryanto B. Santoso, a staff member of a publicly listed
\nproperty firm:<\/p>\n
I don't expect my company will increase salaries or pay annual
\nbonuses, although I need these badly to compensate for the
\ndecreasing value of my salary in dollar terms. I heard from a
\ndirector that the company had difficulty in managing its
\nliquidity. I don't know exactly what's happening... perhaps it
\nhas many unhedged debts in dollars. Well, it is good that I know
\nabout the situation beforehand so I will not be disappointed or
\nsurprised if the company decides not to increase salaries. (team)<\/p>",
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"sponsor": "Okusi Associates",
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