Employers guilty of underpaying workers: Activists

Employers guilty of underpaying workers: Activists

Ridwan Max Sijabat, The Jakarta Post, Jakarta

Labor activists have accused employers and the government of
treating workers inhumanely by underpaying a great number of
them.

Jacob Nuwa Wea, chairman of the Confederation of All-
Indonesian Workers Union (KSPSI), said the recent massive labor
demonstrations were an expression of frustration over poor work
conditions and unfair treatment.

"In fact, most workers are still underpaid, as reflected in
the low wage levels in almost all provinces and regencies. It is
impossible for a single worker in the East Java regency of Madiun
to meet his/her daily needs with the monthly minimum wage of Rp
300,000 (US$30) or another single worker in North Sumatra with Rp
550,000. The amount is just enough to cover their monthly
transportation costs to their workplace," he said.

Nuwa Wea, a former manpower minister, was speaking on Tuesday
at a tripartite summit between labor unions, the government and
employers.

Workers in North Sumatra, West Java, Banten and East Java
recently staged rallies to protest the newly set minimum wages,
which will become effective on Jan. 1.

Nuwa Wea said labor unions could not fight for a significant
increase in minimum wages because tripartite negotiations on
minimum wages were dominated by employers and the government.

"Labor unions have given up as the government has taken the
employers' side," he added.

Rekson Silaban, chairman of the Federation of Indonesian
Prosperity Trade Unions (KSBSI), said the low wage levels
illustrated that both the government and employers had ignored
the 2003 Labor Law, which stipulates that minimum wage levels
should be equal to what is called humane living needs (KHL).

"We (the national tripartite body) have agreed to set 46
parameters to set KHL, but the minimum wage levels have remained
low because there is no political commitment to push the wage
higher," he said.

He said there was a trend among employers to put new employees
on contract or to outsource work to other companies to reduce
labor costs.

Sofyan Wanandi, chairman of the Indonesian Employers
Association (Apindo), declined to comment on the low wage levels
but instead said employers and workers should intensify bipartite
negotiations to settle disputes peacefully and to avoid labor
dismissals that would increase unemployment.

"The government should revise the labor law to attract more
foreign labor-intensive investment to help ease unemployment," he
said.

Nuwa Wea urged the government to make a new law on the
national wage system to narrow the widening gap in the current
remuneration system.

"It is quite unfair that a single worker is paid Rp 300,000
monthly while the central bank governor is paid Rp 230 million a
month. Expatriates are also paid higher than locals," he said.