Batam workers demand job security

Fadli, The Jakarta Post, Batam

Hundreds of people gathered in front of PT NOK, an electronics component manufacturer in Batam's Batamindo Industrial Zone (KIB), which is better known as the Muka Kuning Industrial Zone. The people were looking for work at PT NOK, and if unsuccessful they would simply move on to the next company in the industrial zone.

This sort of "migration" of workers occurs because many of the people employed in the Batamindo Industrial Zone never attain the status of permanent employee. Some may have their contracts extended for one year, two years or even three years, but they never achieve the security of permanent status.

Companies that continue to extend the contracts of workers but never give them permanent status are in violation of the Fixed Period Work Contract (KKWT). Under this scheme, based on Law No. 13/2003 on manpower, workers must be made permanent within two years at most, as outlined in Article 59 of the law.

This article states that workers can go through a probation period of two years at most before being appointed permanent employees or dismissed if found unqualified. However, many companies do not obey this regulation.

Batam Manpower Office head Pirma Marpaung said his office had familiarized domestic and foreign investors with the law in order to avoid any labor disputes.

"We have called on investors to implement the KKWT for just one year and then make the concerned workers permanently after that. But many investors have not heeded our calls," said Pirma, adding that the government could do nothing because the regulation did not carry any sanctions for violators.

The regional chief coordinator of the Riau Islands Indonesian Prosperity Trade Union, Bambang Yulianto, expressed concern over the KKWT system implemented by hundreds of companies on Batam.

According to Bambang, the system benefited companies at the expense of workers. If companies keep extending the contracts of workers without ever giving them permanent status, and then decide to terminate the contracts there is nothing workers can do but accept the decision. They will be out of job without any severance pay, or even a thank you note.

"It is a fact that workers who have been employed by a company for two years and then their contracts are not extended, they cannot demand anything," said Bambang.

One businessman defended the contract system, saying it was crucial to keep businesses competitive. He said the system helped businesses stay abreast of rapid business development, allowing them to remain efficient.

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

The contract system is just one problem plaguing the manpower sector in Batam. Among the other problems in need of addressing is rising number of jobless and falling worker productivity.

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.

With so many factories in the city, it has attracted workers from across the country. There were 221,163 workers registered in the city in September this year.

The city has also attracted expatriates, with 3,097 expatriates registered at 797 firms in the city, according to a spokesman for the Batam Authority.