Employers told to better investment climate

Employers told to better investment climate

Ridwan Max Sijabat, The Jakarta Post, Jakarta

Manpower and Transmigration Minister Jacob Nuwa Wea asked
employers on Wednesday to respect the rights of local workers and
for labor unions to help create a more conducive climate for
investment.

Nuwa Wea explained that employers could avert labor strikes
and keep their investments secure in Indonesia if they complied
with the labor law regulating workers' rights.

He added that industrial disputes with workers could be
settled peacefully if the employers built more bridges with the
labor unions.

"There should be no more dishonesty among us," the minister
said upon inaugurating the new office of the Indonesian
Employers' Association (Apindo) in Kuningan, South Jakarta.

"Therefore, employers and labor unions have to continue
building good communication, mutual trust and transparency
bipartitely."

Nuwa Wea, also chairman of the Confederation of All-Indonesian
Workers Union (KSPSI), lashed out at the use of industrial
strikes by workers to put pressure on employers to meet their
demands, saying the move had contributed to foreign investors'
distrust in Indonesia and obstacles to economic recovery.

"In the event of industrial strikes, both employers and
workers are the losers," Nuwa Wea said, "Employers lose time and
products while workers waste time being unproductive and
sometimes are not paid, depending on their demands."

He said he did want to hear about any more employers violating
the labor law, likewise workers going on strike.

"Industrial strikes must be the very last resort when the
sides are at a deadlock in settling a dispute," he said.

Indonesia is enacting the Labor Law No. 13/2003 and the Law
No. 21/2000 on labor unions regulating industrial relations. the
two laws are expected to create harmonious relations between the
two parties.

Apindo chairman Sofjan Wanandi agreed with the minister,
saying his organization was adopting a new strategy to improve
ties with the labor unions for the sake of economic recovery.

"Apindo is determined to bridge the differences between
employers and workers and to build better communication with
labor unions both at tripartite meetings and bipartite
negotiations," Sofjan said.

Chairman of the Confederation of Indonesian Prosperous Labor
Unions (KSBSI) Rekson Silaban denied accusations that workers
were to blame for the discouragement of foreign investors.

Citing a 2002 survey conducted by the World Business
Organization, he said worker productivity concerns ranked 7th
after terrorism, security, high-cost economy, legal uncertainty
and others as the reasons for poor foreign investment in the
country.

Chairman of the Korean Chamber of Commerce in Indonesia C.K.
Song countered Rekson's statement, saying that for Korean
businessmen, who mostly invest in labor-intensive businesses,
industrial strikes were of serious concern because of the
economic impacts associated with the down time during the
disputes.

"Industrial strikes cause great losses to employers and
workers. Employers' machines do not operate and production ceases
temporarily and we cannot meet our delivery orders overseas." he
said.

Song said some the 800 Korean businessmen in Indonesia were
"stubborn" but they mostly liked Indonesian workers and always
complied with the laws in doing business here.

"To us, workers are a main asset and partner we have to feed
off one another and Indonesians are relatively better than
workers in China and Vietnam. Workers, however, should treat
investors as kings who care about their social welfare," he said.

ILO deputy director in Indonesia Peter Rademaker called on
employers and labor unions to seek a win-win situation and
promote more jobs for the young generation now that unemployment
had reached an alarming level.

"Both sides have to win the situation together. Amid the
growing economy, Indonesia has to be able to create many more new
jobs for the jobless," he said.

Full unemployment this year is expected to reach around 15
million of the 100 million work force while the number of people
working less than 35 hours a week is estimated at over 40
million.