Wage talks heat up, but going nowhere<\/p>\n
Damar Harsanto, The Jakarta Post, Jakarta<\/p>\n
The negotiating between representatives of employers and workers
\nover the city's 2006 minimum wage is getting tougher, with both
\nparties sticking by their demands.<\/p>\n
\"Hopefully, we can reach a win-win consensus before the end of
\nthis month. Otherwise, we will extend the deadline for a couple
\nof days,\" City Manpower Agency head Ali Zubeir told The Jakarta
\nPost on Wednesday.<\/p>\n
Ali acknowledged that the minimum wage demanded by workers was
\nmuch higher than the one proposed by employers.<\/p>\n
\"Our position is to mediate. We have to ensure that the final
\ndecision will not be detrimental to either side,\" he said.<\/p>\n
Jakarta workers said over the weekend that they wanted the
\nminimum wage to be raised from the current Rp 711,834 to some Rp
\n1,203,015 next year, while the employers have reportedly agreed
\nto increase the minimum wage to just Rp 725,000.<\/p>\n
\"I find it hard to understand why the employers'
\nrepresentatives insist on raising the minimum wage to Rp
\n725,000,\" Wajis Mangkona, a workers' representative in the
\ntripartite group told the Post.<\/p>\n
He doubted the employers' statement that any wage increase
\nwould deal a severe blow to ailing enterprises, which also must
\ncope with the recent increase in fuel prices.<\/p>\n
\"In reality, the employers will not suffer the bite of the
\nfuel price hike since they have already raised the prices of
\nproducts to weather the ballooning costs. It is the consumers who
\nare shouldering the higher costs, not the employers. That's why I
\nthink their argument makes no sense,\" he said.<\/p>\n
Labor unions in Jakarta demanded an increase of the minimum
\nwage to Rp 1,203,015 over the weekend.<\/p>\n
He said that the amount was calculated by taking into account
\nthe inflation rate of 4.7 percent from July to December last year
\nand 6.4 percent from January to September this year.<\/p>\n
\"I've never heard of a situation where paying higher salaries
\nto workers would make companies bankrupt,\" Wajis asserted.<\/p>\n
Employer representatives in the negotiations were not
\navailable for comment on Wednesday, but the Jakarta chapter of
\nthe Indonesian Employers Association (Apindo DKI) secretary
\ngeneral Masrana said earlier that firms here would find it
\ndifficult to meet the demand of the unions, because most of
\ncompanies are still struggling to weather the severe blow
\nfollowing the government's policy to raise fuel prices.<\/p>\n
He said that the recent fuel price increase had made the cost
\nof production at some companies, especially the manufacturing
\nindustry, to soar by up to 15 percent.<\/p>\n
The government has raised the price of premium gasoline for
\nindustry to Rp 6,290 per liter, a 21.8 percent increase from Rp
\n5,160 previously. Diesel fuel rose by 12.14 percent from Rp 5,300
\nto Rp 6,000, while kerosene was up by 14.28 percent from Rp 5,600
\nto Rp 6,400.<\/p>\n
\"We can only tolerate an increase of less than 10 percent at
\nthe most,\" he explained.<\/p>\n
Similarly, the Association of Indonesian Retailers chairman
\nHandaka Santosa called on the workers to also think about the
\ncontinuation of the business that they work at.<\/p>\n
\"The most important thing is how to have a balanced decision
\n(on the minimum wage),\" Handaka said.<\/p>\n
He added that the fuel price hikes also led to the lower
\npurchasing power of the people.<\/p>\n
When the purchasing power low, companies have to cope with
\nlower sales, in addition to swelling production costs.<\/p>\n
\"So because of those factors, the workers will also be
\naffected. How can we pay their salaries if we are not selling our
\nproducts,\" he argued.<\/p>\n
The new minimum wage, if an agreement is reached, is scheduled
\nto take effect on Jan. 1, 2006.<\/p>\n
The city administration will give ailing companies a two-month
\nperiod to formally request a suspension from the obligation to
\nabide by the new minimum wage.<\/p>",
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