Wage research council needs more 'teeth'<\/p>\n
JAKARTA (JP): The National Wage Research Council (DPPN) says
\nit should be given more power to formulate as well as enforce its
\nrecommendations.<\/p>\n
DPPN Chairman A.S. Ruky told a seminar on the wage system this
\npast Friday that the council's role should be expanded beyond
\nsimply that of a government think-tank to also anticipate
\nproblems in connection with wages as well as formulate policy.<\/p>\n
The council, which was established in 1969 by presidential
\ndecree, should be allowed to function as more than a research
\ncenter, Ruky said.<\/p>\n
\"By making DPPN a wage council, for example, it could have
\nmore room to formulate a national wage system, control its
\nimplementation and formulate wage scales for companies,\" he said.
\n\"The body could also set sectoral and national minimum wages,
\nmaking it an independent and autonomous body.\"<\/p>\n
The council now consists of 31 members comprising
\nrepresentatives from employers, the All Indonesian Workers Union
\n(SPSI), universities and the government.<\/p>\n
Ruky, who is an executive of PT Semen Cibinong, a private
\ncement producer, acknowledged that many council members have been
\ninactive. \"Only 10 members, including two from SPSI, are actively
\ninvolved.\"<\/p>\n
Ruky said that the main challenges facing the council include
\nraising wage levels in Indonesia, speeding up wage increases for
\nthose at the bottom of the wage scales, and narrowing the gap
\nbetween the highest and lowest paid workers in a company, noting
\nthat in some companies, this ratio reaches 50:1.<\/p>\n
Ruky pointed out that over the years \"things had gone wrong\"
\nwith the way the council dispensed with its duties.<\/p>\n
The position of DPPN chairman had been downgraded. It was
\noriginally held by the Ministry of Manpower before being
\ndelegated to a director general. \"And now it is handed to me -- a
\nperson completely unattached to the ministry.\"<\/p>\n
Matthias Aroef, a panelist from the National Productivity
\nCouncil of the Ministry of Labor, said DPPN should be
\nindependent, and its members more professional. \"It doesn't even
\nhave a budget for research so the members practically work on a
\nvolunteer basis.\"<\/p>\n
Matthias pointed out that DPPN's current structural formation
\ngives it very little access to policy-makers. \"It would be better
\nif the council was chaired by the minister. This way, it would
\nhave quick access to the high-level policy-makers.\"<\/p>\n
Comparison<\/p>\n
As a comparison, David Chew from the National University of
\nSingapore, explained that the Singapore National Wage Council is
\ncomprised of government officials and institution leaders from
\nthe highest levels, including the ministers of labor and finance
\nand trade union leaders. Thus the body has direct access to
\npolicy-makers and the head of the state.<\/p>\n
The seminar, which was held jointly by the Ministry of Labor,
\nDPPN and the Center for Information and Development Studies was
\nthe third in a seven-part conference to examine the overall
\nmanpower situation in Indonesia.<\/p>\n
Setting a minimum wage level has lately become a hotly debated
\nissue as company managers often disagree about what that level
\nshould be.<\/p>\n
Soeharsono Sagir, an economist from Padjadjaran University in
\nBandung and a former aide to the Minister of Manpower, commented
\nduring the seminar that \"the official regional minimum wage
\ncurrently implemented throughout the country is irrational and
\nwithout a clear scientific basis.\"<\/p>\n
He suspected that this has occurred because the government
\nfailed to carry out sufficient research before imposing the new
\nminimum wage levels. \"Instead they only listened to unreliable
\ninformation from local labor councils.\"<\/p>\n
Soeharsono reminded that according to the regulations, the new
\ndaily wages in Jakarta, for example, became Rp 3,800 (US$1.80)
\nand in Kalimantan, Rp 3,250.<\/p>\n
\"This is irrational, because the daily cost of living in
\nKalimantan, Rp 4,248 for an unmarried worker, is far higher than
\nthat in Jakarta, which is Rp 3,856,\" he sited. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/wage-research-council-needs-more-teeth-1447893297",
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