Employers need time to adjust to wage hikes
JAKARTA (JP): An association representing employers is calling on the government to give them more notice next time it hikes the minimum wage levels.
APINDO, an employers association, said many of its members were caught unawares by the increases enforced in virtually every province across Indonesia since the beginning of the year.
APINDO chairman Suratmo Hadisuwito said that while employers were adjusting their cost structure, very often workers refused to wait.
They would then undertake a labor action, such as strikes, to press for their rights, he said, addressing a hearing with the House of Representatives (DPR) on Tuesday.
"Employers should be given at least a three-month notice to allow them to adjust to the new minimum wage levels," Suratmo said.
He recalled that last November, a tripartite board of employers, workers and government representatives in West Java agreed to raise the minimum daily wage to Rp 3,800 from Rp 2,600, to be made effective April 1.
But Minister of Manpower Abdul Latief, who gives the final go- ahead on such rulings, decided that the new minimum wage should be introduced as of Jan. 1.
The government should take into consideration the interest of employers as well as workers, he said.
Latief, a successful businessman before being recruited by President Soeharto himself in March of last year, sees himself as the champion of the workers' cause. He has shown no hesitation in the past to criticize his former business colleagues for failing to meet the basic rights of workers.
His move to raise the minimum wage levels in Jakarta and West Java caused some consternation among employers, as they had to deal with workers going on strike to demand the lawful increase of their wages.
The government has announced plans to hike the minimum wages in many other provinces beginning on Aug. 1, this time announcing the new levels well in advance.
Endorsement
Responding to APINDO's complaints, Oediyanto of the Armed Forces faction agreed that the final endorsement for hiking the minimum wage should be in the hands of the provincial governments and not the minister. This was because the provincial governments had a better understanding of the conditions of their areas.
Apindo Deputy Chairman Rienaldo Thamrin, who accompanied Suratno, said that now that the minimum wage levels in most regions had reached, or almost reached, what is needed to meet the minimum physical requirements, future increases should be tied to productivity.
When a legislator asked whether APINDO considered the minimum wages humane, Thamrin answered it with a question. The deputy chairman asked if the salary system in the public sector was fair, alluding to the fact that civil servants are among the lowest paid profession in Indonesia.
"Sure the minimum wage levels are relatively low ... But the prolonged economic difficulties have also resulted civil servants' pay falling behind the inflation rate," he pointed out.
He also stressed that APINDO has no authority to compel its members to abide by the minimum wage regulations.
"We're not an enforcement agency. We were created to fight for the interest of the members that includes creating a conducive atmosphere for investors," he said.
Minister of Manpower Abdul Latief said on Tuesday that his office has filed with complaints against 50 companies in Jakarta for violating various labor regulations, including on the minimum wage.
In addition, the courts in Medan (North Sumatra) and Surabaya (East Java) have penalized eight companies for similar violations.
The number of offenders has been declining, he said, referring to the fact that there are now greater compliance among companies on minimum wage regulations. (rms/emb)