Wage hike dispute ruling overturned<\/p>\n
Tertiani ZB Simanjuntak, The Jakarta Post, Jakarta<\/p>\n
The government's policy to raise workers' minimum wage gained
\nmomentum on Wednesday when the State Administrative Court
\noverturned an earlier injunction which had delayed the
\nimplementation in Jakarta.<\/p>\n
Businesses who cannot afford to pay the new minimum wage, do
\nhowever retain the right to file an objection with the government
\nto obtain a grace period.<\/p>\n
However, most business owners insisted that regional
\nadministrations should stop setting the minimum wage unilaterally
\nwithout involving them. They said that the policy could kill
\ntheir respective businesses.<\/p>\n
The Jakarta State Administrative Court revoked its injunction
\n-- pending a final decision on the lawsuit -- temporarily
\npostponing the Jakarta Gubernatorial Decree No. 3052\/2001 which
\nrequires a 38 percent increase in minimum monthly wage for
\nGreater Jakarta to Rp 591,266 (about US$60).<\/p>\n
The wage increase, which also applies to other provinces
\nacross the country with an average increase of more than 30
\npercent, took effect on Jan. 1, 2002.<\/p>\n
The case was filed by the Indonesian Employers Association
\n(Apindo) on behalf of its 700 members and the Jakarta chapter of
\nthe Indonesian Chamber of Commerce last December.<\/p>\n
Minister of Manpower and Transmigration Jacob Nuwa Wea lauded
\nthe court's decision on Wednesday, implying that the businesses
\nshould now comply with the policy which is made by each regional
\nadministration after considering the cost of living in each
\nprovince.<\/p>\n
Jacob said that the doors were always open for the businesses
\nto file objections with the government on the minimum wage so
\nlong as they could prove they could not afford to pay it.<\/p>\n
The government has offered a one-year grace period for
\ncompanies which cannot meet their obligation due to financial
\ndifficulties.<\/p>\n
The companies will have to first file a request with the local
\nadministration or directly to the Ministry of Manpower and
\nTransmigration before they have their finances examined by an
\nindependent auditor.<\/p>\n
The policy was announced several weeks ago, according to
\nJacob, but only 10 companies have filed objections due to
\nfinancial difficulties. His office was still checking the
\nfinancial conditions of those companies.<\/p>\n
\"If the companies were declared incapable of complying with
\nthe new wage level, I appeal to all workers not to go on strike
\nor perform a slow-down. Workers should understand their
\nemployers' difficulties during this economic crisis,\" Jacob said.<\/p>\n
He promised support to facilitate establishment of an adhoc
\njudiciary to settle conflicts between employers and employees
\nwith his ministry as the mediator.<\/p>\n
Jacob said that the employers should now start to consider
\nimplementing internal policies of a regular raises for workers so
\nthat they could meet the minimum wage that the government sets on
\nregular basis.<\/p>\n
Jacob was speaking to journalists after witnessing the renewal
\nof cooperation between the Association of Indonesian Cigarette
\nFactories (GAPPRI) and the Federation of Clove Cigarette, Food
\nand Beverage Workers (FSP RTMM).<\/p>\n
GAPPRI's chairman Ismanu Sumiran said that the members
\ncomplied with each region's policy on the wage increase although
\nmost of its members were only small- and medium-sized businesses.<\/p>\n
Apindo's secretary general Djimanto told The Jakarta Post on
\nWednesday that the revocation of the court's ruling would make
\nhim reverse the decision to stick to the old minimum wage level.<\/p>\n
The ruling revocation means that the court will proceed with a
\nlawsuit against the government to reach a final decision of
\nwhether or not the gubernatorial decree should be annulled.<\/p>\n
However, according to Djimanto, Apindo will not comply with
\nthe decree while the case is pending.<\/p>\n
\"We can... but then we'll die (go bankrupt). And if we lose
\nthe case...we will appeal to the higher court.<\/p>\n
\"It's better this way: (Jakarta Governor) Sutiyoso revokes his
\ndecree while we retract our lawsuit. Then we, the workers and the
\ngovernment will sit together discussing a proper wage increase
\nwhich will not kill the companies,\" he said, adding that 80
\npercent of Apindo members are now having financial problems.<\/p>\n
Djimanto said the grace period given to companies which cannot
\npay the minimum wage is not effective because, for some
\nbusinesses, even last year's minimum wage of Rp 426,250 was too
\nmuch of a burden for them.<\/p>\n
The regional wage increase has caused problems nationwide with
\nthe some workers staging strikes and others scaling back their
\nproductivity.<\/p>\n
The employers have also threatened to stop hiring new workers
\nor to move their businesses to other regions with lower regional
\nminimum wage levels.<\/p>",
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