Batam workers demand job security

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.