Union seeking Rp 5,000 daily minimum wage<\/p>\n
JAKARTA (JP): The Jakarta branch of the All Indonesian Workers
\nUnion is campaigning to increase the daily minimum wage from Rp
\n3,800 (US$1.38) currently to Rp 5,000.<\/p>\n
The union chairman, Salam Sumangat, told The Jakarta Post here
\nyesterday that the union would like to see the new minimum wage
\nimplemented by 1995.<\/p>\n
"I will continue the campaign so that the minimum wage can
\nmatch the minimum physical requirements of a bachelor," said
\nSalam, who is also a member of the City Council.<\/p>\n
The regional minimum wage for the greater Jakarta area was
\nincreased in January from Rp 3,000 to Rp 3,800. Many observers
\ncontend that this is not high enough since the 26 percent raise
\nstill falls short of a bachelor's minimum physical requirement of
\nRp 140,000 per month.<\/p>\n
More importantly Salam revealed that the Union is fighting to
\nensure that workers get special transportation and food
\nallowances because the current wage system covers only the basic
\nsalary.<\/p>\n
"Businesses in Jakarta tend to include the two allowances as
\npart of the minimum wage," he explained.<\/p>\n
Salam, who is also a member of the City Council's Commission E
\non social welfare, was confident the over 24,000 businesses
\nlocated in the greater Jakarta area would have no problems in
\nbearing the added cost.<\/p>\n
We are not talking about percentages here but we're talking in
\nterms of a very small few who can't afford it, he said.<\/p>\n
Periodic hike<\/p>\n
Elaborating further on the proposals of the national union's
\nJakarta branch for the additional wage increase, Salam said it
\nwas planning to introduce a periodic raise based on the work
\ntenure of workers.<\/p>\n
So, apart from the minimum wage, those who have been working
\nlonger will get an extra bonus based on how long they have been
\nworking at a company, Salam said.<\/p>\n
Commenting on the treatment of workers, Salam blasted the
\nlarge number of companies which have failed to institute an
\nequitable distribution of profit.<\/p>\n
During a recent meeting of the International Labor
\nOrganization (ILO) in Geneva, Salam discovered that based on the
\n1990 World Bank report, businessmen in the Jabotabek (Jakarta,
\nBogor, Tangerang and Bekasi) area grab 80 percent of the value
\nadded profits.<\/p>\n
"Companies tell their workers to increase productivity yet
\nthey only receive 20 percent of the earnings," he said.<\/p>\n
According to the World Bank, Indonesia's record is far worse
\nthan its closest neighbors, such as Malaysia and Singapore, who
\nalready provide over 20 percent of their profits to their
\nworkers.<\/p>\n
Salam went on to claim that of the 7,800 companies in the
\ngreater Jakarta area who employ at least 25 workers, most were
\ndistributing only a small portion of their profits to their
\nworkers. (mds)<\/p>",
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