Businesspeople refresh stance against pro-labor bills
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.