90 percent of Batam workers are still not permanent

Fadli, The Jakarta Post, Batam

Some 90 percent of a total of 221,163 electronics factory workers surveyed in Batam are contract workers; a situation that makes them vulnerable to layoffs.

The figure was revealed by a survey carried out in August by the Association of Batam Human Resource Professionals.

The huge number of people with contract worker status shows that Batam is not the best place for workers, according to a leading expert on human resources, Harry Rahardjo.

In order to improve the plight of contract workers, Harry urged the Batam municipal administration to issue a regulation that obliges all companies in Batam to promote workers to permanent staff if they work with the company for more than three months.

If the proposal is approved, it will be a major breakthrough because at present, their status can remain as contract workers for two years before companies are required to give them full employee benefits.

Harry said the survey, which was held at 400 factories that produce electronics on the island, really portrays the situation at the factories. At a company with some 4,000 workers, only 300 of them are permanent staff members, while in another company, only 200 out of a total of 3,000 workers are permanent workers.

"The situation is deplorable. With the contract status, the workers have no job security," said Harry, who is also a manager at a tap water company on Batam.

The situation was especially difficult for male factory workers, who traditionally are the main breadwinners for their families. When their contract is up and they lose their jobs, it affects whole families.

However, one business leader said they could do nothing except impose the contract system. The contract system was crucial to keeping the businesses competitive. The system helped them keep abreast of rapid business development, allowing them to remain efficient.

"Orders for products are constantly changing. Sometimes we need more workers, other times fewer workers. We could not survive if we used a permanent job system," said Abidin, the owner of an electronics assembly factory with some 8,000 workers.

Batam is a prominent industrial city that benefits from its proximity to Singapore. Many foreign and domestic firms have built factories in Batam and ship their products to Singapore's ports before dispatching them worldwide.