Collective labor agreement

Collective labor agreement

JAKARTA (JP): The management of PT Sepatu Bata and its labor representatives signed yesterday a collective labor agreement aimed at improving its workers' welfare.

Under the agreement, management raises the minimum wage from Rp 100,000 (US$45.45) to Rp 116,910 per month and raises the food allowance from Rp 1,000 to Rp 1,200 per day.

J.A. McGoldrick, the company's president, said that his firm currently employs 2,900 workers.

He said labor costs accounted for 15 percent of the company's total spending.

Director General of Industrial Relations and Labor Standards, Suwarto, hailed the signing of the agreement, which shows that there is better communications between the management of the company and its unit of All Indonesian Workers Union.

"Such better communications are vital to help prevent any labor conflicts," he said. (rms)