90 percent of Batam workers are still not permanent

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.