Delay of labor decrees draws mixed response

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)