'Employers, employees must settle wage rift'

Annastashya Emmanuelle, The Jakarta Post, Jakarta

President Megawati Soekarnoputri called on employers and employees on Friday to work together to find the most feasible solution to wage disputes.

"Let's be honest, fair and open in discussing and finding a solution... with this approach we will be able to solve and avoid disputes," President Megawati said, in her speech during the Safe and Healthy Working Environment ceremony at the State Palace.

"I have ordered the Minister for Manpower and Transmigration to take the necessary steps to establish solid cooperation between the government, workers and employers," she added.

A fresh round of wage disputes between employers and employees emerged late last year, following the issuance of Jakarta Gubernatorial Decree No. 3052/2001, which raised the minimum wage in the Jakarta area to Rp 591,262 per month from Rp 421,000.

The ruling prompted the Association of Indonesian Employers (APINDO) to file a lawsuit with the State Administrative Court in Jakarta, seeking a revocation of the decree, arguing that it would be impossible for companies to raise wages if the government increases electricity and fuel prices.

The association also argued that many companies would be forced to lay off hundreds of thousands of employees should the decree be implemented.

Commenting on the President's request, Minister for Manpower and Transmigration Jacob Nuwa Wea said that he had maintained a cordial relationship with employers.

He also denied allegations made by employers that he was biased toward the workers.

"I'm trying to create harmonious and fair conditions for both employees and employers," Jacob told reporters.

"In facing the (wage) problem, I call on employees not to go on strike, while I encourage employers to be transparent in their dealings with workers."

"Don't just pour out your grievances when the company is on a downturn, and keep silent when you are making a good profit," he added.