An extra month's salary

An extra month's salary

The decision was long overdue. The decree issued by Minister
of Manpower Abdul Latief obligating all companies to pay their
workers an extra month's salary each year was hailed as very good
news last week.

Year after year workers regularly staged labor strikes
demanding bonuses for religious holidays, especially at Idul
Fitri. Apparently, many companies felt that because holiday
bonuses were not obligatory, only strongly recommended by the
government, they were under no obligation to provide them.

Minister Latief's decision has turned the tables on them. And
some companies may feel even more upset because the decree
clearly stipulates that the holiday bonus, known as THR, should
be part of the worker's regular income. In addition to one
month's salary, the bonus must also include the workers' fixed
allowances.

Although the penalty for companies which violate the decree is
light, three months in jail or a Rp 100,000 fine, any sensible
person should hail the decision as a victory for goodwill and
common sense. That the decree will meet opposition and raise
objections from the employers is to be expected; for years they
have enjoyed the government's favor and are now understandably
reluctant to lose the upper hand.

Latief's decision should be seen as an effort on the part of
the government to gradually improve the workers's conditions.
This is the right thing to do. For decades our workers have been
victims of a national trauma involving our overly dramatized fear
of the communist specter. And thus, while other segments of
society have gradually begun to enjoy the fruits of our national
development, the workers' fate has been largely ignored.

Whether we like it or not, it was through the relentless
efforts of many non-governmental organizations (NGOs), domestic
and international, that the plight of the Indonesian workers came
into the spotlight. And slowly steps have been taken to improve
our workers' conditions. The step-by-step increase of the minimum
daily wage regulations in the last two years is a clear example.

While much has been done to improve our workers' lot, this
does not mean that everything is settled. We believe that
Minister of Manpower Abdul Latief was sincere in his intentions
when last year he pledged to raise the workers' remunerations.
One could even detect a "Latief factor" that has somehow
contributed quite a lot to speeding up the effort.

We think that the next step of the government should be to
improve its relations with the NGOs. It is undeniable that there
are a number of NGOs which sincerely are trying to help resolve
the plight of our workers. We do not see anything wrong with the
Ministry of Manpower inviting them to join hands in the national
effort to ease the burden of our workers. Since those NGOs
consist mostly of young and idealistic people, one would expect
them to help balance the efforts of the officials.

Such a move would not only improve the relationship between
the government and the NGOs but would also help to improve our
reputation internationally.