Apindo, KPEN tell businessmen to ignore new labor policy

Rendi A. Witular, The Jakarta Post, Jakarta

In a continued showdown over labor issues, a leading business association and think tank urged businessmen on Tuesday to ignore the latest policy of the Ministry of Manpower that applies a pro- labor ministerial decree issued in 2000 as a guideline in handling labor matters.

The Indonesian Employers Association (Apindo) and the National Economic Recovery Committee (KPEN) said ministerial Decree No. 150/2000 was no longer applicable because it contravened the labor laws of 1957 and 1964, which had been brought into effect again, following the government and the House of Representatives' failure to approve new labor laws.

Furthermore, they said, Decree No. 150/2000 had been corrected and complemented by ministerial Decrees No. 78/2001 and No. 111/2001, which were consistent with the 1957 and 1964 labor laws.

"If the ministry wishes to implement Decree No. 15/2000, it should be implemented in a package with Decree No. 78/2001 and No. 111/2001," APINDO deputy chairman Djimanto, accompanied by KPEN's chairman Sofyan Wanandi, told a press conference.

The Ministry of Manpower had jeopardized the country's legal system by applying Decree 150/2000 as the decree had no longer any basis in any law, Djimanto said.

Pointing out the contradiction between the decree and the laws, Djimanto said under the revived Law No. 22/1957 and No. 12/1964, employers had no obligation to pay severance and service payments for resigning workers, but Decree No. 150/2000 obliged them to do so.

The 1957 and 1964 laws, that focus on the settlement of industrial disputes and the dismissal of workers respectively, were brought into effect again by default recently after the House of Representatives and the government failed to approve new labor laws due to protests from the business community and unions.

However, Minister of Manpower and Transmigration Jacob Nuwa Wea decided to impose Decree No. 150/2000, arguing the 1957 and 1964 laws were too old and no longer relevant to the current situation.

Decree No. 150/2000 was issued during the administration of president Abdurrahman Wahid with his labor minister Bomer Pasaribu to fill the void caused by the freezing of the 1997 law.

Sofjan said businessmen were really concerned with the protracted debates over the labor bills at the House. As such, APINDO, KPEN and the Indonesian Chamber of Commerce and Industry (KADIN) will initiate a meeting with labor unions to bridge differences.

"For the sake of businessmen and labor unions, we will hold a meeting with labor unions hopefully in the near future so that the labor bills can be endorsed by the House around November this year," said Sofjan.