City Councilors push for minimum wage rise of 13%

City Councilors push for minimum wage rise of 13%

JAKARTA (JP): City councilors have urged the municipality to
push ahead with plans to increase the local minimum wage by 13
percent despite the nation's monetary woes.

Councilors Tadjus Sobirin and Djonharro from the ruling Golkar
faction said Wednesday that realizing the plan could help casual
workers deal with rising costs.

They suggested the city administration make a tripartite
arrangement with employers and workers to discuss the companies'
ability and the correct time to increase wages.

"We realize that it's probably not the right time now for
employers to increase wages but workers need more money.
Everything is expensive now. How can workers survive on such
small wages?" Tadjus, head of the Golkar faction, said.

According to the Ministry of Manpower's city office, the
minimum wage in Jakarta is Rp 172,500 (US$28.30) per month. It
covers only 96 percent of everyday needs as set out in the
ministry standard.

The calculation takes into consideration the cost of food and
drinks, housing, clothing and basic expenses such as
transportation, recreation, medicine and education.

The 13-percent increase is expected to meet these basic needs,
the councilors said.

"I believe -- despite the ongoing crisis -- the municipality
and city employers can come to a good arrangement for the
workers," Djonharro said.

"If 13 percent is too much, for instance, the municipality
could accept a smaller hike. I strongly suggest the plan proceed
because workers who receive a small wage are really in a jam
right now."

Some employers have previously expressed their objection to
the plan to boost workers' wages, saying it was almost impossible
due to the economic crisis.

Djafar Tirtosentono, chairman of the Thousand Islands Marine
Tourism association, said it had been difficult to stay afloat
even in the tourist industry.

"Every year, especially in the peak holiday season like now,
we always have a full house. But right now we only have 10
percent of the usual number of visitors. We can't possibly afford
the raise," Djafar said.

"Basically I agree with the proposal but I don't think this is
the right time to increase wages. It's just impossible to do it
because we have to focus on staying afloat."

Most businesses, especially tourism, have been the hardest hit
by the rupiah's free fall, he said.

"Since last October, a large percentage of holiday
reservations have been canceled. People usually pull out when the
conversion rates are high.

"Wait for at least another six months. If the economic
situation is improving then we can talk about a raise. We have to
be patient."

Businessman Ferdy M. Jauhari, director of a cookie company,
said that even though it was high "cookie" season, it was
difficult to give a wage raise.

"There is not one business in this city which is unaffected by
the monetary crisis. So I don't think we can afford a raise. My
company has already dismissed 150 workers.

"It's not that we don't want to give our workers a better
income. We really are in a jam here."

Based on ministry data, 41 companies want to postpone this
year's increase to the minimum wage because of their inability to
pay.

But only 28 companies have been given permission because of
financial hardship.

The ministry has yet to decide whether to approve proposals by
three companies in South and North Jakarta to dismiss 310 workers
this year. (edt)