Businesspeople refresh stance against pro-labor bills

Adianto P. Simamora and Tertiani ZB Simanjuntak, The Jakarta Post, Jakarta

After the House of Representatives (DPR) agreed to delay endorsing two controversial labor bills, businesspeople demanded on Friday further deliberation and revision to several contentious clauses they consider disadvantageous to employers.

In a media conference held by the National Commission for Economic Recovery (KPEN), a number of business associations called for the revision of 47 articles concerning five issues -- strikes, dismissals, payment, a limitation to night-shift working hours and severe sanctions against employers.

Under the bills -- one on workers protection and the other on dispute settlement -- the management are obliged to pay striking workers.

"Everywhere around the world, the cardinal principle is no work no pay ... Such a clause (in the bill) is irrational," said Hasanuddin Rachman, general secretary of the Indonesian Employers Association (Apindo).

The bill also stipulates that employers must continue to pay the salary of workers who are facing criminal charges in court until a verdict is issued.

Night-shift workers will not be allowed to work more than 35 hours per week, which is five hours shorter than the current regulation, which in turn will lower productivity, eventually making companies less competitive.

Also uncommon is a clause stating a company has to pay severance pay to workers who voluntarily resign.

Another clause is that employers who violate labor regulations could risk a jail term.

Widjanarko, chairman of the Indonesian Toy Association (APMI), said that the jail sanction could scare off small and medium scale enterprises (SMEs) from continuing their business.

"Most SMEs would have to stop operating as they don't have money to pay a noted lawyer or buy the truth as is done by conglomerates," he said.

Further, the businesspeople also demanded full involvement in the making of better drafts together with the trade unions, this time without the government intervening.

The House had postponed the passing of the bills which were slated for Sept. 23 until the next sitting session in November, following stiff opposition from both workers and employers.

In the meantime, the House will also issue a law to annul the existing Law No. 25/1997 on manpower that some consider does not protect the interests of workers, which was expected to be replaced by the two bills.

"It's like bringing the sky and the earth together... we cannot guarantee that everybody will be a 100 percent happy with the bills," said legislator Surya Chandra Surapaty from House Commission VII which deliberated the labor bills.

"But if we insist on endorsing the bills, then the country will face massive rallies of workers as well as the out flow of investments," he told The Jakarta Post on Friday.

With the postponement, the government may reenact Law No. 22/1957 on labor dispute settlement and Law No. 12/1964 on dismissal of workers in private companies.

Minister of Manpower and Transmigration Jacob Nuwa Wea reiterated on Friday that the government had drafted the most applicable bills for the interests of both the workers and the employers.

"If the businesspeople still insist, then I have to remind them that the obsolete and unpopular laws on manpower will be reimposed," he remarked.