Delay of labor decrees draws mixed response

JAKARTA (JP): The government's decision to reinstate Minister of Labor Decree No. 150/2000 and postpone Decrees No. 78/2001 and No. 111/2001, was met with an air of disappointment among employers who warned of stricter recruitment policies as a consequence of the decision.

Both the Indonesian Employers Association (Apindo) and the National Economic Recovery Committee (KPEN) lamented the decision to delay the 2001 decrees, which require employers to provide compensation, instead of severance and service payments, for resigning and retiring workers and for those who are dismissed for committing major violations.

"This decision, made by an ailing government, will overburden employers and labor-intensive companies and discourage foreign investors from Indonesia," Anton J. Supit, deputy chairman of KPEN, told The Jakarta Post by telephone here on Saturday.

The government decided on Friday to delay the 2001 decrees following labor rallies that hit Jakarta, Bandung in West Java, Surabaya and industrial zones in East Java.

Anton, also chairman of the Indonesian Footwear Industry Association (Aprisindo), said the government's decision could jeopardize efforts to defuse the economic crisis and improve the competitiveness of Indonesian products in the free trade era.

"With such a decision, our products will loose out to international competition and the country will no longer be conducive to foreign investors," he said.

He also said that, with the re-enforcement of the 2000 decree, most companies would hesitate when recruiting new employees and tighten their recruitment policy.

Djimanto, acting secretary general of Apindo, concurred and said that the re-enactment of the 2000 decree could affect the fate of the 40 million jobless in the country.

"Most employers will tighten their recruitment policy in anticipation of workers who might exploit the hefty financial advantages of the controversial decree," he said.

He also said Apindo would ask the Federation of All Indonesian Workers Union (FSPSI) to take responsibility for facilities damaged by workers during strikes in Bandung and Sidoarjo, East Java.

"FSPSI must be responsible for company-owned facilities damaged during the rallies," he said.

He further claimed that foreign investors have lodged complaints over the government's decision and damage done to their assets during the rallies.

Labor

Meanwhile, among labor unions the mood was generally jubilant after their protests succeeded in attracting the attention of the government.

However unions were divided over their next step.

FSPSI chairman Jacob Nua Wea, said his organization would accept the government's decision to delay the decrees for a month but warned that it would continue the fight for the absolute annulment of the 2001 decrees.

"We have issued an order to halt the labor rallies to pave the way for a tripartite dialog with the government and employers," he said.

Asked to comment on Apindo's demand that FSPSI be responsible for the damages incurred during the protests, Jacob said the labor unions could not be held accountable as they never ordered workers to use violence.

"We have instructed our members to abstain from violence and intimidation," he said.

Moh. Zumhur Hidayat, chairman of the Confederation of Indonesian Industrial Unions (Gaspermindo), urged the government to invite all labor unions in the tripartite negotiations and not just the FSPSI.

"The government should treat all unions equally despite their different sizes," he said.

Separately, several small trade unions held a meeting at a resort in the Puncak area, West Java, to work out their next step.

Ariest Merdeka Sirait, deputy chairman of the Confederation of Independent Labor Unions (GSBI), said small trade unions rejected the government's decision as it was engineered by the Golkar Party and the Indonesian Democratic Party of Struggle (PDI Perjuangan) for their own political interests, he claimed.

"We have agreed to continue rallies, especially in Java, until the two decrees are permanently canceled," he said.

Also attending the meeting were labor activists representing the National Front of Defenders of Indonesian Workers (FNPBI), Indonesian Solidarity Trade Union (SMK), Jabotabek Labor Union, Confederation of Free Labor Unions (GSBM), Reformist Labor Union, Reform SPSI and Maritime Labor Union.

Dita Indah Sari, chairwoman of FNPBI, accused Golkar and PDI Perjuangan of abusing workers to stage violent rallies to discredit embattled President Abdurrahman Wahid.

"Bomer Pasaribu, a Golkar politician, and Jacob Nua Wea of PDI Perjuangan have played an important role in organizing violent labor rallies for their political benefit," she said.

When asked she denied that any small labor unions collaborated with the People's Democratic Party (PRD) in their actions.

"Our struggle is free from political interests," she said. (rms)