City seeks 20% hike in minimum wage
City seeks 20% hike in minimum wage
JAKARTA (JP): The city administration bowed to union demands
on Monday to seek a mid-term review of the minimum wage for
workers in the capital, saying that it would push for a 20
percent hike from the central government.
Deputy Governor with responsibility for public welfare
Djailani announced before some 2,500 protesting workers that the
administration would submit the proposal for a minimum wage
increase to the Ministry of Manpower for its approval beginning
in September.
Djailani took part in a meeting involving representatives of
an employers organization, five labor unions, some members of the
City Council and officials from the Jakarta Office of the
Ministry of Manpower, at City Hall.
The meeting broke down after four hours.
The unions were demanding a minimum wage of Rp 437,000 per
month while the Association of Indonesian Employers (Apindo)
refused to reconsider the current minimum wage of Rp 286,000
which came into effect on April 1.
Apindo negotiator Djuwito Martakusumah said after the meeting
that any additional increase should be negotiated between
management and workers in each company.
"Some companies can afford to pay Rp 500,000, but the figure
cannot be imposed on others because they face differing financial
conditions," he said.
Djailani later held a brief meeting with his staff as the
protesting workers refused to leave the premises empty-handed.
He emerged with the announcement.
"I will propose the increase to the Ministry of Manpower for
its approval," Djailani told the cheering protesters.
The minimum wage level is usually set through negotiations
involving representatives of the unions, employers and the local
government and reviewed only once a year. The Ministry of
Manpower must approve the increase.
The five unions represented were the Jakarta chapters of the
Federation of All Indonesia Workers' Unions (FSPSI), the
Indonesian Prosperous Labor Union (SBSI), the Indonesian Metal
Workers' Union (SPMI), the Indonesian Muslim Workers' Brotherhood
(PPMI) and the Coalition of Indonesian Labor Unions (Gasbiindo).
"The current minimum wage is barely able to support our
existence in the capital," Mustakim Ishak, chairman of FSPSI
Jakarta said, describing it as an inhumane wage.
On the deputy governor's offer, Mustakim said: "It is
acceptable. It's an increase."
The protesters left City Hall peacefully after hearing the
announcement.
The proposed minimum wage, if approved, would bring it closer
to the estimated level required for the minimum physical
subsistence of a single worker living in Jakarta, which is set by
the Central Bureau of Statistics at Rp 351,000 a month. (06)