Union proposes 15% hike in minimum wage<\/p>\n
JAKARTA (JP): The Federation of All Indonesian Workers Union
\nproposed yesterday that the government raise the minimum regional
\ndaily wage by 15 percent next year.<\/p>\n
Union chief Bomer Pasaribu said his proposal is in line with
\nthe current Guidelines of State Policy, which state that all
\nworkers' minimum physical needs should be fulfilled by the end of
\nthe current Sixth Five Year Plan in 1999.<\/p>\n
At present, the regional minimum wage meets only 92 percent of
\nworkers' minimum physical needs, Bomer told journalists after
\naddressing a seminar on pension schemes here.<\/p>\n
He pointed out that past increases in the government-set daily
\nminimum wage had been insufficient compared to the workers'
\nincreasing productivity.<\/p>\n
Over the past 20 years, the leader argued, Indonesian workers'
\nproductivity has increased by 402 percent but in real terms,
\ntheir pay rises are meaningless.<\/p>\n
\"It would be natural if workers' have their minimum wage
\nincreased because the national productivity level is also
\nrising,\" Bomer was quoted as saying by the Antara news agency.<\/p>\n
According to Bomer, workers' wages represents between 10
\npercent and 15 percent of companies' total production costs while
\nthe \"normal\" level should be between 30 percent and 40 percent.<\/p>\n
The union also proposed that in the future, the minimum wage
\nlevel is calculated taking into account the workers' dependents
\nas well.<\/p>\n
The current daily minimum wage is based on the individual
\nworker's own physical need.<\/p>\n
A union leader who declined to be named quipped, that under
\nthe current system, Indonesian workers should live in celibacy if
\nthey want their wages to be sufficient to make ends meet.<\/p>\n
The union, which is the only labor organization the government
\nrecognizes, is giving input for the preparation of the upcoming
\nguidelines of state policy to be adopted in 1998.<\/p>\n
Adopted after the new president is elected, the state
\nguidelines are renewed every five years.<\/p>\n
Bomer said the union will propose that employees of private
\nand state companies should receive their pension after they
\nretire. At present, few private companies give their employees
\npension when they retire.<\/p>\n
As in industrial countries, pension schemes should be made
\nmandatory for private companies, he said.<\/p>\n
In Australia, he cited as an example, employers are required
\nto set six percent of their employees' salaries aside for their
\npension fund. Then the workers are required to pay a certain
\npercent of their wages for the fund.<\/p>\n
\"I think this system is applicable in Indonesia although the
\ndetails would have to be carefully studied,\" he said. \"The union
\nwill propose that the 1998 guidelines on state policy should make
\nit mandatory for major companies to initiate pension funds.\"
\n(pan)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/union-proposes-15-hike-in-minimum-wage-1447893297",
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