Union calls for hike in minimum wages<\/p>\n
JAKARTA (JP): The Federation of the All-Indonesia Workers
\nUnions urged the government yesterday to increase the official
\nminimum wage by 20 percent across the board.<\/p>\n
The country's only officially recognized labor organization
\neffectively withdrew its earlier support for the government's
\nruling to postpone any increase in minimum wages pending a
\nresolution of the economic crisis.<\/p>\n
Federation chairman Datuk Bagindo said the about-face was made
\nduring a plenary meeting of the leaders of the federation and the
\n13 industrial sectors' unions in Jakarta last week.<\/p>\n
Bagindo came under severe criticism from fellow union
\nexecutives last month for endorsing a decree by Minister of
\nManpower Theo L. Sambuaga which froze the official minimum wages
\nat current levels indefinitely.<\/p>\n
Minimum wages are traditionally increased on April 1.<\/p>\n
Tripartite talks on the issue involving the government,
\nfederation representatives and employers became stalled as the
\neconomy plunged deeper into crisis, until Theo issued the ruling
\nlast month.<\/p>\n
Bagindo said the federation was now sticking to its earlier
\ndemand that minimum wages be raised by at least 20 percent.<\/p>\n
He said the many companies which could afford to pay higher
\nminimum wages should be forced to do so.<\/p>\n
Those firms that could not meet the target because of
\nfinancial difficulties could be exempted, as permitted by the
\nrules on minimum wages, he said.<\/p>\n
He noted that several industries had voluntarily raised the
\nwages of their workers in spite of the government's freeze.<\/p>\n
Wages in the plantation sector have been increased 16 percent,
\nin the textile sector between 16 percent and 20 percent, in the
\ncigarette, tobacco, beverage and food sector between 13 percent
\nand 18 percent and in the electronics sector by 40 percent, he
\nsaid.<\/p>\n
Wages were not the main problem for most companies currently
\nin trouble, he said. \"Companies are laying off workers not
\nbecause they cannot pay their workers' wages, but because they
\ncannot afford to pay for imported raw materials.\"<\/p>\n
Inflation<\/p>\n
The increase in minimum wages was necessary in view of the
\nsoaring rate of inflation, he said.<\/p>\n
The government has estimated that inflation will reach up to
\n50 percent in the 1998 calendar year, up from 17 percent in 1997.
\nWithout any salary increases this year, the real value of the
\nminimum wages would effectively decline 67 percent.<\/p>\n
The union's changed stance comes amid unconfirmed reports that
\nthe government is about to award a 15 percent salary increase to
\ncivil servants.<\/p>\n
The monthly minimum wage for Jakarta is currently set at Rp
\n172,000 (US$23) per month. Batam has the highest monthly minimum
\nwage, Rp 220,500, and Yogyakarta the lowest, Rp 106,500.<\/p>\n
Responding to the appeal, the Ministry of Manpower said the
\ndecision to freeze minimum wage increases would not be reversed.<\/p>\n
Secretary-General Soewarto said the government would not
\nreview or lift the decree for the present because it was made
\nafter an objective evaluation of the economic situation.<\/p>\n
He said, however, the decree did stipulate that the decision
\nwould be reviewed when the economy began to recover. (rms)<\/p>",
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