1,500 workers demand total labor law reform

JAKARTA (JP): More than 1,500 workers from the metal, electronics, machines and tourist sectors staged a boisterous demonstration at the Ministry of Manpower here yesterday, demanding the revocation of the 1997 labor law and thorough reform of the state-owned insurance company PT Jamsostek.

The workers held a free speech forum as they waved banners reading: Hentikan Campur-Tangan Militer Dalam Kasus-kasus Pekerja (Stop Military Interference in Labor Disputes), Cabut Undang- Undang No. 25/1997 (Revoke Labor Law No. 25/1997) and Usut Korupsi di PT Jamsostek (Investigate Rampant Corruption at PT Jamsostek).

Hikayat Atika Karwa, chairman of the electronic, metal and machine sector's trade union, said the government should demonstrate its commitment to total reform by acceding to the workers' demands.

"The government should pay serious attention to the fate of hundreds of thousands of fired and laid-off workers. Workers will also continue to stage protests unless the government improves their social welfare," he said.

Atika Karwa said the government should set up an independent team to handle the problem of laid-off workers.

"The independent team should be able to provide legal protection for laid-off workers and fight for their rights. It should also provide training and financial facilities for them to create jobs or move into other professions."

Ali Samioen, chairman of the tourist sector's trade union, said the government should review the new labor law and amend chapters that ignored worker rights.

"The new law must be reviewed if the government wants to see workers respected. Workers can no longer become subject to exploitation both by their employers and the government," he said.

Ali said the government should no longer involve the security apparatus in labor disputes.

"This is the reform era. Workers are free to unionize and to air their aspirations. They should no longer be subject to oppression and exploitation."

He also urged the government to review the social security law, issued in 1992, and put the state-owned insurance company PT Jamsostek under the management of a tripartite board of directors.

"Law No. 3/1992 must be reviewed and PT Jamsostek's management must be reformed. The company's management must represent workers, employers and the government because the funds managed by the company come from workers, not from the government," he said.

He said the Attorney General's Office should also investigate allegations of rampant corruption in the company, including the use of Rp 7.1 billion to finance the making of the new labor law and the construction of two high-rises in the city.

Director General of Industrial Relations and Labor Standards Soufii Samsuddin received the workers' petitions and pledged to discuss them with Minister of Manpower Fahmi Idris.

"I promise to discuss these petitions with the minister," he said.

The minister is currently abroad attending an International Labor Organization meeting in Geneva.

Jamsostek

The president of PT Jamsostek, Ackmal Husen, told The Jakarta Post here yesterday that the company had no objections to a review of Law No. 3/1992 on the social security program.

The law provides a monopoly to PT Jamsostek to run the social security program for workers. Companies employing at least 10 workers, or with an annual payroll of more than Rp 1 million, are obliged to participate in the program.

Ackmal, who replaced Abdulla Nusi in the company's top position two weeks ago, said Jamsostek was also ready to compete if the government lifted its monopoly and allowed other private companies to run social security programs for workers.

"We do not see any problem if the government lifts the monopoly. PT Jamsostek is ready to compete with other companies. A healthy competition will force us to improve our services to workers," he said.

Minister of Manpower Fahmi Idris recently indicated that the monopoly might be abolished since the people have been demanding complete transparency and openness in competition.

Asked to comment about the planned exodus of over 160,000 cigarette factory workers in Kudus, Central Java, from Jamsostek's program, Ackmal pointed out that such a move "would be criminal because it is against the law (which requires workers to join PT Jamsostek's program)".

The workers announced Tuesday that they would quit Jamsostek's social security program and set up their own insurance company.

Ackmal denied the allegation that Jamsostek misused Rp 7.1 billion to finance the making of the new labor law, saying "the money that was used to finance the law's development came from government capital in the company, not from the funds collected from workers."

Then minister of manpower Abdul Latief admitted last year that Jamsostek funds were used to finance the deliberation of the controversial bill.

Ackmal still displayed optimism yesterday over the future of PT Jamsostek, but asserted that the company would have to improve its services and create a transparent management.

"Professionalism and better service are two key principles the company is determined to improve upon in the future," he said. (rms)