City minimum wage up Rp 40,000
City minimum wage up Rp 40,000
Bambang Nurbianto, The Jakarta Post, Jakarta
The Jakarta minimum wage is to increase by 6.3 percent next year
from this year's Rp 631,000 (US$75.1) to Rp 671,550. The increase
is expected to be effective starting Jan. 1.
Head of the Jakarta Manpower and Transmigration Agency Ali
Zubeir told the press at City Hall on Thursday that the increase
in the minimum wage was stipulated in Gubernatorial Decree No.
3654/2003 issued on Oct. 31.
Ali said the governor's decision was based on the proposal of
the City Wage and Social Safety Committee, which is authorized to
study wage issues in the city.
Members of the committee include union representatives,
employers and city administration officials.
Ali said the committee had held several meetings to discuss
the city minimum wage since April 30. He, however, did not go
into details about how the figure of 6.3 percent was reached.
The new minimum wage does not include weekly transportation
and meal allowances paid by the companies every week.
In the decree, the governor also prohibits companies from
cutting wages which currently exceed the new minimum wage in the
city.
He said that the city administration still gives the
opportunity to companies which want to propose a delay in the
implementation of the new minimum wage.
Ali said those companies could submit a proposal to delay the
implementation to the Jakarta Manpower and Transmigration Agency
no later than Dec. 21.
He said companies should enclose a number of documents to
support their request for a delay.
First, the proposal should enclose a letter of agreement from
union workers. If there is no union at the company, the proposal
should be approved by at least 50 percent of workers who receive
the minimum wage.
Second, a copy of the company's founding certificate. This
requirement is only for companies that employ over 100 employees.
Third, data about production and sales for last two years and
production and sales forecasts for the next two years.
Fourth, data about the salary scale based on position.
Fifth, data on the number of employees who would be affected
by the delay.
And sixth, the readiness of the company to pay their employees
based on the new wage schemes after the grace period expires.
The company may delay the implementation of the minimum wage
for up to one year.
Meanwhile, a number of labor unions in the city expressed
disappointment with the increase, saying that the figure would
not cover the basic needs of workers in the city.
In their statement, the unions pointed out that based on the
result of a survey conducted by the unions' wage commission, the
minimum wage for Jakarta should be Rp 722,356.
The unions also demanded the implementation of the minimum
wage according to the business sector, based on a recommendation
in a 1999 manpower ministry decree on the minimum wage in
relation to the business sector.
According to the unions' calculation, the workers in the
metal, electronics, electric and automotive industry should
receive a minimum wage of Rp 758,476, while workers in the
chemical, energy and mining sector should receive Rp 845,992.
Workers in the pharmacy and health sector should receive 5
percent more than the general minimal wage. And workers in the
textile and leather sector should receive Rp 758,476.
The workers threaten to hold a mass demonstration to press for
their demands.