Tough talks expected on minimum wage<\/p>\n
Damar Harsanto, The Jakarta Post\/Jakarta<\/p>\n
The employers association and trade unions are likely to be
\nlocked in a tough tug-of-war over the city's minimum wage in 2006
\nas both sides are sticking firmly to their respective positions.<\/p>\n
Labor activists stressed on Friday that they would demand a 20
\npercent increase in the minimum wage in Jakarta next year, while
\nemployers insisted that any salary increase should be below 10
\npercent.<\/p>\n
\"It seems that negotiations will be tough,\" the Jakarta branch
\nof the Indonesian Employers Association (Apindo) secretary-
\ngeneral Masrana told The Jakarta Post on Friday.<\/p>\n
He said that most enterprises here would find it difficult to
\nmeet workers' demands to raise the minimum wage by 20 percent as
\nmost of them were still struggling to weather the severe blow of
\nthe recent fuel price hike.<\/p>\n
The government raised the price of premium fuel for industries
\nto Rp 6,290 per liter from Rp 5,160 previously, while diesel fuel
\nwas raised from Rp 5,300 to Rp 6,000 and Rp 5,600 to Rp 6,400 per
\nlitter.<\/p>\n
According to Masrana, the fuel price increase has caused the
\ncost of production at some enterprises, especially manufacturing
\nindustries in the city, to soar by up to 15 percent.<\/p>\n
\"We fully understand that workers need a raise in their
\nsalaries to weather the pinch of the fuel prices. It is
\nimpossible not to raise the minimum wage at all. What we can
\ntolerate is an increase below 10 percent at the highest,\" he
\nasserted.<\/p>\n
He said that rather than laying off workers, many employers
\nwould boost their efficiency and launch aggressive marketing
\ndrives to increase their sales to withstand the impact of the
\nfuel price hike.<\/p>\n
Timbul Siregar of the Indonesian Workers Association (Aspek)
\ndemanded on Friday that the new minimum wage be set higher than
\nthe inflation rate.<\/p>\n
\"We deem a 20-percent hike the most rational proposal,\" he
\ntold The Post.<\/p>\n
Jakarta's minimum wage for 2005 is Rp 711,000 per month.<\/p>\n
He emphasized that this year alone, workers had to experience
\ntwo increases in fuel prices. The first was on March 1 by an
\naverage of 29 percent, and the second on Oct. 1 by an average of
\n126.6 percent.<\/p>\n
A tripartite team comprising representatives from APINDO,
\nlabors unions and the Jakarta Manpower Agency was sitting at the
\nnegotiation table on Friday to discuss the planned increase in
\nthe minimum wage.<\/p>\n
\"We are expected to reach the final decision on the proposed
\nprovincial minimum wage by the end of this month. The proposed
\nwage that is agreed upon by all concerned parties will be
\nsubmitted to Jakarta governor (Sutiyoso) for approval,\" said
\nJakarta Manpower Agency head Ali Zubeir.<\/p>\n
Ali said that his agency would give a two-month period for
\nailing companies to ask for an exemption from the obligation to
\napply the new minimum wage before it takes effect on Jan. 1,
\n2006.<\/p>\n
For the exemption, he said, small enterprises would be asked
\nto show their past two year's balance sheets, while large
\ncompanies would face audits from the agency at their expense.<\/p>\n
\"The most important thing is that employers should be
\ntransparent in explaining their financial status to their workers
\nto avoid misunderstanding, especially when the companies are in
\nthe doldrums,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/tough-talks-expected-on-minimum-wage-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}