Sat, 24 Sep 1994

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.