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'Employers, employees must settle wage rift'

| Source: JP

'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.

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